JOINT VENTURE IN Australia.
The Kedah Corporation in Malaysia, is going into the meat trading business in Australia.
The state owned corporation plan to export Halal beef throughout the region of South East Asia, with particular interest in Indonesia.
Mentri Azizan from the Kedah Corporation, said "the revenue made from the trading operation, will be used to improve the state of Kedah". Azizan claims to have one client in Indonesia, who wishes to fly 200 tons of fresh beef a day from Australia.
He also claims that he can easily market 600 tons per day, when we asked a well known Australian beef trader if these volumes were viable, he reminded many old hands in the business, of the Rolls Royce syndrome.
Whilst indeed the sovereign funds of Asia are very strong, the meat trade is a tough trade for insiders, let alone outsiders.
Note:
The Rolls Royce syndrome is, "that people either come into the meat trade on a bicycle and leave in a Rolls Royce or visa versa".
