Instructions
Read the case study below and answer the case study questions.
To answer the questions, you have to apply your learning in the course and provide limited data support.
Follow the unit outline for general guidelines.
Remember, marks for the case study will be awarded on the basis of the following key criteria but not limited to:
• Identified key issues of the problem
• Clearly identified concepts related to the topic studied in the unit
• Clearly identified theories related to the topic studied in the unit
• Critical analysis and linkage of the identified theories and practice
• Quality of arguments and judgements based on the analysis
• Clearly identified implications to management from issues and problems addressed
• General quality of the format and presentation of the assignment.
Further guidance will be given in class.
Case Study
China cattle imports boost NT confidence
AAP – Fri, Nov 7, 2014 10:53 PM AEDT
A billion-dollar live cattle export deal with China will help restore confidence in Northern Territory cattle farmers after several lean years. The federal government is believed to have all but signed a live export deal to sell one million Australian cattle worth up to $1 billion to meet China’s growing demand for beef.
It comes as the major trading partners’ edge closer toward a free-trade agreement after almost 10 years of talks. NT Cattlemens Association CEO Tracey Hayes says farmers are cautiously optimistic about the beef deal.
“There’s a level of confidence growing among northern producers, and that’s been missing for a while,” she told AAP on Friday.
Many were still struggling to recover since 2011?s blanket ban on live cattle exports to Indonesia.
“It’s really great for producers to start to have an increase in farm gate returns so they can invest back in their businesses and pay back some debt – all those things that really lend itself to a healthy community,” Ms Hayes said.
She said the million-head figure is based on the potential demand in China, but “we’re not positioned currently to supply that amount of cattle in addition to the existing cattle we’ve got”.
It’s as yet unclear what kind of cattle China will be looking for, whether it’s feeder, slaughter-weight or dairy cattle, and it is too soon to say how many could be exported from the territory.
Regardless, “it’s going to be very good for the NT”, Ms Hayes said.
China buys Australian dairy and beef breeder cows, and took more than 78,000 head of dairy cattle and 15,000 beef cattle last financial year. Meanwhile, Vietnam has been a solid market for NT cattle in the last year, and Cambodia is an emerging market, which is vital for diversification for Australian producers, Ms Hayes said.
Shares in beef exporters Australian Agricultural Company and Elders surged on Friday after reports that the live cattle deal was pending.
AACo (Australian Agricultural Company) shares rose 12 cents, or 8.39 per cent, to $1.55.
Elders shares added two cents, or 11.43 per cent, to 19.5 cents.
“Any opening of the trade relationship is certainly very positive, especially if it comes with reduced tariffs,” Morgans analyst Belinda Moore said.
(Source: https://au.finance.yahoo.com/news/china-cattle-imports-boost-nt-115315625.html; Accessed on 9th November 2014)
Answer the following Case Study Questions
1. Provide a suitable alternative title for the case study.
2. Examine the trade patterns of Australia.
3. Explain the trade performance in the Australian Beef industry.
4. Explain the issues and concepts addressed in the case study.
5. Critically analyse the linkage of the theories that best attempt to explain the trade in the case study.
6. Explain the potential benefits and costs in the economy of the main trading partners in the case study.
7. Explain implications and challenges for management that arises from the issues identified in the case study.
8. As a management team member, advise how management could face the above challenges.
9. Draw a suitable conclusion.
