IT’S still “early days”, but local growers and producers are hoping Chinese investment could provide a wealth of opportunity to their flailing industries.
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A delegation of Chinese business representatives met at the TRECC to hear presentations from local agricultural industries in a bid to establish relationships and open the doors for trade and investment.
Among the delegates from southern China were the Everich logistics company, which paid $30 million for the new Eastpoint retail complex earlier this year.
Everich chairman Eric Lee said the purpose of the session was to initiate a “win-win” situation for Tamworth and Chinese city Shenzhen, a port for business in China.
Mr Lee said the company hoped to build new projects in Tamworth, including a five-star hotel, a convention centre, and a bank to support local farmers if they faced financial strain and needed to borrow money. “We want to act as a bridge,” Mr Lee said.
“China has a huge market and is hungry for resources.”
Everich president Thomas Yang said the Tamworth region was rich in products that the company needs – beef, lamb and crops.
He said the strategy for Tamworth was to simplify the processes of trade in a bid to lower their costs.
“After the talks today, Everich has more confidence in the region,” Mr Yang said.
“We aim to bring more and more investors from China to invest in Tamworth.”
Cattle producers Greg Upton from Upton Pastoral Company in Walcha and Adrian Spencer from Ironbark Herefords in Barraba said the lack of competition in the beef industry was “killing the profitability” of their companies.
“A group like this has potential to add competition into the beef industry,” Mr Spencer said.
Mr Upton said producers were “on the point of bankruptcy” due to oversupply; while it costs $600 to produce one cow, they are selling at $300.
He said he was trying to push for a new export abbattoir for Tamworth.
Baiada chief financial officer Brett Kirk said he hoped the poultry company could start exporting to China and that foreign investment into brioler sheds would be welcomed.
“We need a lot of growth in the region,” he said. “We’re looking for supply chains into China.”
AMPS Agribusiness CEO Nigel Herring came as an observer and said the “alignment of goals is always the toughest part” in a relationship between the region and Chinese investors.
