The Australian agribusiness industry received a boost today with a major deal signed with China for the establishment of a multi-billion dollar investment fund.
The Beijing Australia Agricultural Resource Cooperation Fund will be a joint initiative of the Beijing Agricultural Investment Fund and Yuhu Agricultural Investment, Trade Minister Andrew Robb said.
The fund will invest up to $3 billion in industries including dairy, beef, lamb and seafood, focusing on high-quality produce that can be delivered to Chinese consumers.
Beijing Agricultural Investment Fund was initiated by Beijing Capital Group, a state-owned finance business, in 2009.
Infant formula was of particular interest among various dairy products, with Mr Robb saying the value of Australian milk powder exports to China had increased more than 50 per cent in the 2014 financial year.
Mr Robb also spoke today at the Australian Dairy Farm Investment Forum in Melbourne, flagging that a free trade agreement with China could be expected soon.
But there are always sensitivities on both sides and "you rarely get everything you want", he warned.
Mr Robb said New Zealand had received a substantial increase in dairy revenue from China since signing an FTA in 2008, almost $4 billion in 2013.
Australia's competitive position would be undermined if it did not adopt a similar approach, he said.
