Iron ore magnate Andrew Forrest eyes growing Chinese meat market

Australian billionaire Andrew Forrest said he is planning to carry sample parcels of steak in his luggage on his next trip to the mainland.

After recently visiting mainland supermarkets and seeing limited Australian beef available, Forrest, who made his fortune exporting iron ore to China, returned home and developed a plan, including buying his own processing company, to boost shipments of the meat from Australia, the third-largest exporter.

"In China, I am being asked, 'Andrew where can I get high quality reliable beef'," Forrest said in the Perth office of his Fortescue Metals Group, Australia's third-biggest iron ore company. When he goes back next month, "I am going to take it in and give everyone a pack," he said.

Forrest, who this year bought Western Australia's only licensed beef exporter to China, said Australia could boost its production by 50 per cent should it secure a supply position in the mainland market. China, already the biggest consumer of meat, may double beef imports by 2018 as rising wealth changes diets, Rabobank International said in December.

"I see longer term, higher sustained prices," driven by steady demand from China, Forrest said on Wednesday, adding that he was considering buying more farms or companies to help boost output.

Early this month, Forrest bought Harvey Beef, which has the capacity to process 4,500 cattle a week at its plant 140km south of Western Australia's state capital, Perth.