WA meat exporter in $1bn China deal

The West Australian government has talked up the prospects of meat exports to China in the wake of a local producer's $1 billion trade deal with major importer Grand Farm.

The state's largest red meat processor, family-owned V&V Walsh, has inked a deal to provide frozen boxed meat to China's Grand Farm, requiring an extra 500,000 lambs and 30,000 cattle per year during stage one of the project.

WA agriculture and food minister Ken Baston said Grand Farm would invest $200 million in the state to increase lamb and beef production, while Bunbury-based V&V Walsh would spend $800 million in Inner Mongolia on new processing facilities and feeding systems.

Mr Baston said the prospects for growth of beef and sheep meat exports into China were high.

"WA has the very significant opportunity to grow exports," he said.

"For every one kilogram of extra lamb meat consumed in China, an extra 65 million lambs will be required. And for every one kilogram of extra beef consumed in China, an extra 6.5 million cattle will be required."