August, 2018|Market Access, Intl Competitiveness

Agreement opens doors to Chinese trade


“Signing the China-Australia Free Trade Agreement is a significant milestone that will benefit both our countries and further deepen our relationship. The Australian dairy industry can expect positive flow-on effects right throughout the supply chain.”

Dairy Australia Managing Director, Ian Halliday


Research funded by Wine Australia found that targeting Chinese visitors to Australia can enhance exports by converting tourists into long-term Australian wine fans and word-of-mouth ambassadors.

ISSUE

China imports the equivalent of more than 10 billion litres of milk each year. Today, it is Australia’s number one dairy market. In 2015/16, almost 145,000 tonnes of dairy product (20% of Australia’s total dairy exports by volume) worth USD$604 million was exported to China. But China is also a target market for other global suppliers and Australia needs to gain trading advantage to continue to grow sales into the country.

SOLUTION

As demand for dairy foods in China escalated, the door opened for more international suppliers to enter the market. For the Australian dairy industry, it brought urgency to trade negotiations and the need to secure an effective agreement with China.

For more than a decade the Australian dairy industry conducted trade activity and relationship building with China, to increase cooperation between the nations and provide a strong foundation to develop and then exploit a Free Trade Agreement. Among its initiatives, Dairy Australia has been a guest and presenter at the China Dairy Industry Association (CDIA) annual conference since 1995, conceived and worked closely with CDIA on the China Scholarship program starting in 1999, all aimed at building trust, understanding and long-term commercial relationships to benefit Australian dairy.

RESULTS

As demand for dairy foods in China escalated, the door opened for more international suppliers to enter the market. For the Australian dairy industry, it brought urgency to trade negotiations and the need to secure an effective agreement with China.

For more than a decade the Australian dairy industry conducted trade activity and relationship building with China, to increase cooperation between the nations and provide a strong foundation to develop and then exploit a Free Trade Agreement. Among its initiatives, Dairy Australia has been a guest and presenter at the China Dairy Industry Association (CDIA) annual conference since 1995, conceived and worked closely with CDIA on the China Scholarship program starting in 1999, all aimed at building trust, understanding and long-term commercial relationships to benefit Australian dairy.

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