SYDNEY, Nov 07, 2014 (AFP) - One million Australian cattle worth Aus$1 billion (US$860 million) will be shipped to China annually in a deal that will double the size of the live export industry, officials and reports said Friday.
The deal, which is still being finalised, is expected to be formally announced in the coming days, The Australian newspaper said, with government frontbencher Christopher Pyne hailing a breakthrough that will help plug China's beef shortfall.
"It's a million cattle, worth $1 billion. The ink is not dry on the contract though," Pyne told Channel Nine television Friday.
"It's a great breakthrough... we have a free trade agreement with Japan, free trade agreement with South Korea, working on one with China."
Australia is the world's leading supplier of live cattle, sheep and goats, particularly throughout Southeast Asia and the Middle East.
China already buys Australian cows for breeding purposes, but the new deal will see the animals shipped live then slaughtered to be eaten as beef.
The Australian Live Exporters Council said health protocols still had to be agreed, with livestock availability and shipping capacity the major factors affecting how soon the big headline numbers would be achieved.
The live export industry is a vital component of the Australian agricultural sector and currently contributes some US$1 billion in export earnings annually to the economy.
News of the deal comes with Australia in the final stages of completing a free trade agreement with its top export partner China.
Australian officials are currently in Beijing to thrash out the final sticking points, which they hope will see the deal unveiled during President Xi Jinping's visit to Australia for the G20 summit next week.
The FTA is expected to cover an array of issues, including agricultural tariffs and quotas, manufactured goods, services, temporary entry of people and foreign investment.
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