As the need for overseas produced dairy in China grows, the need becomes urgent for diversified, reliable international suppliers of quality product. Whole Milk powder for instance, is supplied almost solely from New Zealand, which garnered 41% of Chinese dairy imports in 2013.
China imports the equivalent of 10 billion litres of milk each year, more than the total national production of Australia, and with Australian domestic demand increasing the chances of Australian dairy ‘flooding’ the Chinese market are small.
A free trade agreement that gives Australia the same tariff provisions in the Chinese market as New Zealand will help to deepen the already strong relationships between the Australian and Chinese dairy industries and lead to better deals for Chinese consumers.
The Australian dairy market has been price deregulated since 2001 and is resilient, efficient and responsive to consumer demands on price, quality and safety. Strict government-enforced standards apply to protect consumer health.
Australia already supports China’s domestic industry, nurturing on-farm development there with the export of 50,000 dairy heifers every year.
Dairy Australia has presented at the China Dairy Industry Association annual conference since 1995 and has worked with the association on the Dairy Australia China scholarship scheme since 1999.
In that time Dairy Australia has brought 220 Chinese scholars to Australia to get first-hand knowledge of our industry, and the relationships established are providing invaluable personal and business links between the two nations.
Also, for at least ten years Australia has worked with the Ministry of Agriculture, sharing technical information in the biennial China-Australia dairy talks and assisting with domestic production.
For two years running, the Australian Ambassador to China has spoken in support of these growing ties at the CDIA conference in Shanghai, proof of the level of importance the Australian Government is giving to dairy.
As our relationship further deepens, the completion of a Free Trade Agreement will be a milestone that will benefit both countries.
• Charlie McElhone is group manager trade and strategy at Dairy Australia.
