Updated: Delegates from highly regarded Chinese beef production giant Sino-Australia Top Beef were led on a whirlwind tour of sites of interest around Charters Towers and Townsville.
Company chairman Zhang Yong and fellow delegates chief financial officer Zhou Ligong and Mr Zhang’s daughter and assistant Vivian Zhang are looking at the potential of creating a joint venture beef processing operation in the “Gold City” with Australian management at the helm.
Trade & Investment Queensland’s Roger Kaus, Charters Towers mayor Frank Beveridge and councilor Ramon Jayo acted as the delegates tour guides during their time in Charters Towers with Mr Kaus joining them the following day in Townsville.
Mr Kaus said the venture Mr Zhang is interested in would have the two-pronged advantage of giving the company a northern base of operations for beef processing capabilities and would also place them in close proximity to the Port of Townsville for them to send their boxed beef products – and possibly live export cattle – back to Beijing, where the company’s operation is based.
“They’ve were firing questions at us all day, so it’s fair to say they’ve been impressed withthe knowledge they’ve acquired,” he said.
“From what I’ve heard Mr Zhang is a bit of a legend in China; he was heavily involved in the development of the dairy industry in Mongolia and has now bought his proven track record to bear on building the beef cattle industry over there.
“Their marketing in China is focused on the idea of the Australian beef being clean; organic, and healthy with the aim of optimising peoples diets and enhancing the national quality of life.
“What they’ve taken in here has given them a lot of confidence in backing that idea up.”
The delegates inspected the export quarantine depot facilities at the Dalrymple Saleyard, and gained valuable insight into the challenges, advantages and logistical operations of the northern beef industry while the weekly store and prime sale unfolded.
Charters Towers mayor Frank Beveridge said the tour comes on the back of the delegates discussing export prospects in the north while attending a luncheon with Queensland premier Annastacia Palaszczuk and Townsville mayor Jenny Hill during their recent visit to Beijing.
As well as their visit to the saleyard, the delegates were also given an overview of the northern beef industry by DAF’s Tim Moravek at the Charters Towers Regional Council Chambers, and trekked to Sue and Peter Hammer’s property at Annavale to see how a northern feedlot operates.
The group then inspected the site of the potential beef processing facility approximately 20km out from the city center, which they may be interested in investing in.
The delegates continued their tour in Townsville where they inspected the Port of Townsville facilities and were briefed on its logistical capabilities by general manager trade and property Claudia Brumme-Smith.
Ms Brumme-Smith detailed the $400m investment in port and road infrastructure over the last four years.
“The construction of the Port Access Road and two new births at the Port of Townsville means that the time it takes to load cattle at Townsville is twice as fast as it was two years ago,” she said.
“The access road allows for triple road train’s which create a lower cost, quicker haul for unloading your cattle; and the increased berth capacity has given us the ability to lower vessel congestion at the port which means faster turnaround times for your boxed beef consignment or live export cattle.”
She said those factors together with Townsville’s geographical location to Asia gives the region the advantage of being able to complete a round trip to China faster than from any other port in Australia.
“We can deliver your processed beef and live export cattle shipments to Beijing in 10 or 11 days.”
The delegates were also informed about various investment opportunities in the region including the 10 hectare real estate development project Harbour City along the city’s beachfront at the Strand.
Mr Zhang also presented an overview of the company and it’s present and future goals.
The company which was founded in 2013 has wholly owned subsidiary businesses in Australia.
Mr Zhang envisions the company becoming a world leader in the supply of cattle and sheep across the industry in China through their feedlotting operation in Australia.
These include a 3,000 acre operation in Ballerat; a 4,000 acre feedlot in Forbes and a 10,000 acre property in Toowoomba.
They run 50,000 head of cattle and 1000,000 head of sheep on these operations.
Mr Zhang said the tour had been very interesting and well worthwhile.
“I’ve learn’t a lot about transport; pastoral land quality; infrastructure currently in place and the capabilities of the port,” he said.
“The next step is to start looking at rural property we can invest in, and look in partnerships we can forge with live export operators to ship our cattle back to China; I think there is a lot of potential for us to pursue our business interests in the north.”