SeedStock Opportunities in Chinese Beef Sector
Lahiffe: “One of the issues in China is that the government subsidizes the seeds and genetics to the backyard farmers but the professional companies do not want to use the poor government-support genetics which are not world class. So there is a massive opportunity for top quality genetics.”
He continues with more about what beef breeds can be found in China currently.
Lahiffe: “It is a hot topic in China because Simmental was the breed of choice in areas like Inner Mongolia. They sort of suited that area but now Angus is becoming the one that is seen most favorable. Some of that has been driven by the commercial issue which is China allows Australian live Angus cows to be exported to China. So from that the genetics have followed. So yes, good seed stockers could be very, very welcome and profitable in China.”
He says that the beef industry is really modernizing and compares it to the last decade in the Chinese dairy industry which has moved from 3 million backyard farmers with 3 or 4 cows to 300,000 dairies today with most having at least 300 head.