A Chinese customer that pulled out of a supply deal with Bindaree Beef has been ordered by the Supreme Court to pay $31.35 million in compensation.
Northern NSW processor Bindaree Beef and Chinse customer, the state-owned Chinatex, had forged a three-year supply deal in 2015 which involved Bindaree processing about 900 cattle per week.
Chinatex, represented by a Zhiuhua Liang, agreed to bear the risk for rising cattle prices, but a large cattle price hike just after the deal was finalised put a strain on the relationship, and Chinatex pulled out.
Supreme Court judge David Hammerschlag said Liang “lacked any commercial moral compass” during the hearing, according to a Fairfax Media report.
Bindaree did find other customers for some of the cattle that Chinatex didn't pay for, according to the report.
Bindaree was awarded $31.35 million in compensation plus interest and costs to be determined at a later hearing.
Since the deal, Chinatex has been acquired by Chinese giant COFCO, which conducts a large amount of business in Australia.
Bindaree Beef still has big plans to do business in China, and with this in mind recently signed a joint venture with Hong Kong-based Hui family and investment firm Archstone Capital in a $140 million deal.
