China and Australia strike $46m meat deal
China's Shandong Delisi Food is to invest US$46m with Australia's Yolarno to construct a new cold storage facility, workstations, office block and improved transportation facilities; the new site will be situated in the Qingdao shipping port in China. Yolarno predicts the deal will develop a revenue stream of US$300m; it will help both companies promote their full range of frozen meat products in China and increase competitiveness in Taiwan, Hong Kong, Russia, South Korea and Central Asia.

Their joint investment will see the construction of a new cold storage facility, innovative workstations, an office block and improved transportation facilities. The new site will be spread over approximately 60,000km2 in the shipping port of Qingdao, north-eastern China.

Australian meat processor and packer Yolarno estimates the investment will develop a revenue stream of CNY2bn ($300m). This will help the company gain around CNY120m ($18m) in profit per year.

No start date has been set for the construction of the Qingdao facility.

But once the site is up and running it will improve global logistics, help to streamline exports of beef, lamb, poultry and pork and, ultimately, provide Shandong Delisi Food and Yolarno Pty with a stable source of income.

'Bolster competition'​

The $46m investment will help both companies promote their full range of frozen meat products in China. It will also bolster competitiveness in nearby markets like Taiwan, Hong Kong, South Korea, Russia and Central Asia.

Last year Yolarno produced around 58,000 tonnes (t) of beef and 6,000t of by-product and has been operating in Australia since the early 1980s.

Shandong Delisi Foods, on the other hand, is a relatively new player in China. Founded in 2003, the company produces and distributes a range of frozen meat products. Last year it recorded revenue growth of 2.58%, according to the Wall Street Journal​.