Sorry I can't see there 'only' being one solution to the supply into a growth area. Big believer in many ways to skin a cat.
Chinese purchasers of premium beef don't trust chinese processors hence their demand for 'Branded Australian Beef'
Production costs have been falling at the Darwin site so perhaps that will offset the perceived 'high production costs' for beef from Australia. It will certainly help with profitability.
The Chinese buying this product want to pay top dollar for quality. It is like making a statement to show off their wealth. The lower priced products are seen as second class.
I think you are mistaking the model AAC is chasing. In their view less is more. In my opinion.
The live trade has targeted their market. The Boxed Beef market is a totally different differentiated market.
These businesses are fundamentally different.
AAC Price at posting:
$1.13 Sentiment: Buy Disclosure: Held
(20min delay)
