Australia’s Dairy Exports Gain Edge in China

Australia’s dairy industry is poised to benefit as a trade war between major global economies shifts Chinese import preferences. With a long-standing free trade agreement in place, Australian dairy exporters enjoy tariff-free access to China, giving them a competitive edge as Chinese consumers increasingly embrace Western dairy products in their diets.

China’s evolving food culture has created new opportunities for Australian dairy exporters, as demand grows for products such as milk, yoghurt and cream. Festivals play a key role in this shift, with traditional foods now incorporating Western dairy ingredients. The Australian dairy sector, already a key supplier, stands to gain as Chinese buyers seek reliable sources for premium dairy products.

Some of China’s largest food manufacturers are now looking to Australia and New Zealand to bolster their supply of essential ingredients, such as butter, whipping cream, and cream cheese. One Australian exporter is currently finalising a deal to supply 3,000 tonnes of whipping cream per year to China. With trade tensions leading to tariffs on American dairy, Australia’s position looks even stronger.

Beyond tariffs, Australia’s fast supply chain and reputation for premium quality further enhance its appeal to Chinese buyers. Many Chinese firms are actively diversifying their dairy supply to mitigate risk, making Australia a key player in their strategies. With growing health consciousness and Western eating habits influencing Chinese consumers, demand for Australian dairy products looks set to rise.

Source: The Australian, Trading Economics, DairyNews