When Yan Shuchun turned his hand to sheep meat production in 2012, the former senior financial services executive knew it would be a lot harder to make money. Three years on, however, the company he formed, Meng Yang Group, has not only become one of the largest meat producing and processing operations in China, but it is now planning a stock market listing. The Inner Mongolia autonomous region-based firm doubled its revenue to 1.2 billion yuan ($188 million) last year and it is expected to hit 2 billion yuan this year, driven by increased exports particularly to countries in the Middle East…Full Article: China Daily Sept 2015

Key Points

  • From January 2015 to June 2015, Chinese sheep meat imports prices declined from CNY 25,000 (US$3,920) per MT to CNY 22,000 (~US$3,450) per MT.
  • According to China’s largest sheep meat producer, Chinese sheep meat consumption totals 3 kg per capita (vs. 50 kg per capita in Australia).
  • Zhongmeilian Group, catering supplier (i.e. hotels and restaurants) distributes/supplies sheep meat within China.

ChinaAg Comments

  • In January 2015, China’s Zhonghe Group (Henan Province) imported 1,431 Australian sheep.
  • In November 2014, China and Australia signed a preliminary free trade agreement that made (effective in 2015) 85% of Australian exports tariff free. By 2019, 93% of Australian exports will be tariff free.
  • From 2010 to 2014, Chinese (incl. Hong and Macau) imports of sheep meat from New Zealand increased from more than 50,700 MTs to 165,000 MTs. The next largest supplier, Australia, saw their supply to China increase from nearly 42,000 MTs to 135,800 MTs over the same time period. Imports from Uruguay totaled almost 9,000 MTs in 2014. China primarily imports frozen bone-in sheep meat cuts.
  • From 2010 to 2013, Australia was the sole supplier of live sheep to China, with exports rising from 1,279 live sheep (valued at US$1.6 million) to 3,457 live sheep (US$5.2 million) over the period.

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