A NEW joint venture is aiming to revolutionise production and genetic improvement in China.

A partnership between Australian livestock breeders and the Inner Mongolian Provincial Government will supply China with genetics, as well as management tools in nutrition.

An Adelaide group plans to send stud stock, including 500 White Suffolk ewes and 10 rams, 85 White Dorper ewes and five rams, as well as 27 Wagyu cows and three bulls to China in March.

Leading Victorian sheep breeder David Pipkorn is one of the directors of the new venture, China Agri-Business Limited.

Fellow director Bronte Mawson bought 33 ewes for the shipment from Mr Pipkorn's Detpa Grove White Suffolk sale at Jeparit last week.

The joint venture also has invested in the supply chain, retaining control of the animals through to wholesale.

The meat will sell in top Chinese restaurants.

The first shipment of stud sheep will be used to establish a White Suffolk stud in China which will sell 700 rams to local producers. Lambs will then be bought back and put through an integrated feedlot.

This stud will then be duplicated, with a new stud of this size being established each year.

Mr Pipkorn said the venture aimed for long-term sales agreements with Australian studs. In the past, Australian breeders have struggled to develop ongoing relationships in China.

"Without a joint venture where both parties have a stake in the end result, it is less likely that such a proposal would be sustainable," Mr Pipkorn said.

"Investment by the joint venture company in the whole supply chain brings quality control, plus instant and valuable feedback from every sector, allowing any necessary adjustments to occur rapidly."

According to a company statement, "Chinese Government officials are very excited about the project as it will be the centrepiece of their objective to improve national production output".

"They see the vastly improved genetics, nutrition and management from this module system having far greater potential to fill a recognised deficiency of at least 30 per cent in animal production output in China than any other option," it stated.