Shares in Australia's biggest cattle exporter, Wellard, have surged after the company agreed terms for its long-awaited first shipment of beef cattle to China.
Wellard will ship about 2,000 cattle from southeast Australia to China's Rongcheng HCMH Trade and Service Co, a subsidiary of Tai Xiang Group, which specialises in frozen and processed food.
The exporter's shares were two cents, or 16 per cent, higher at 14.5 cents at 1127 AEST.
Chief executive Mauro Balzarini says the China shipment is small but very significant.
"China offers big potential for Wellard and the Australian cattle industry in general, and we are confident this first shipment will pave the way for the development of a more regular trade," Mr Balzarini said on Tuesday.
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"We see this as the start of a long-term relationship with clients in China."
Mr Balzarini said Australian cattle producers will benefit from the China trade because China is importing cattle with a different specification to those imported by Vietnam and Indonesia.
Wellard said the cattle will be quarantined and then processed at a facility in China that meets required animal welfare standards.
