Jatenergy Development Pty Ltd’s first shipment of milk powder and other soft commodities to China.
Cash flow project taking advantage of China Free trade.
Jatenergy maintains current energy assets using Soft Commodity trading to add cash flow and profit while waiting for Energy sector to rebound.
Soft Commodity Trading and the Free Trade Agreement China
Jatenergy Development Pty Ltd (JD) (subsidiary of Jatenergy Limited) has successfully exported milk powder from Australia to China. This export represents the start of Jatenergy’s foray into soft commodity trading. By utilising Jatenergy’s strong Chinese business network the company is able to source buyers. This is further enhanced with the recently signed China Australia Free Trade Agreement (ChAFTA) and China’s growing demand for fresh clean produce that Australia is now globally recognised.
“China is excited about Australian produce. Its freshness and quality is considered to be the best and is becoming most sought after. Jatenergy has been preparing for the China Free Trade Agreement and has positioned itself as the soft commodity conduit between Australia and China,” says Mr Wilton Yao, Director Jatenergy Development Pty Ltd.
The ChAFTA was signed on 17 November 2014 after nearly 10 years of negotiations. China is Australia’s biggest export trade partner accounting for over 33% of export trade. The ChAFTA will ultimately mean that 95% percent of Australian exports to China will be tariff free. At the moment some exports attract a hefty 40% tariff tax. Products from Australia’s agriculture sector include beef and dairy. Building on trade deals already concluded with Korea and Japan, ChAFTA forms part of a powerful trifecta of agreements with Australia’s three largest export markets that account for more than 61% of our exports of goods. Most important is that the agreement allows for further liberalisation and the expansion of market access over time. This places Australia and Jatenergy in a strong position to secure additional gains as China undergoes further economic reform into the future.