Dairy exports to China set to grow

Australian dairy producers and manufacturers will benefit from tariff reductions for liquid milk thanks to the China-Australia Free Trade Agreement (FTA), according to Agriculture Minister Barnaby Joyce.

Norco’s $4.5 million upgrade to its dairy processing facilities is a reflection of increased business confidence among Australian agricultural companies, Minister Joyce said.

“Norco should be congratulated for their success to date both in Australia and overseas. Having pioneered a cold supply chain to facilitate exports of fresh milk into China, Norco is well placed to take advantage of any further improved market access into China and is now investing $4.5 million to upgrade its Raleigh dairy processing facility in readiness to meet increased demand from this key trading partner,” said Minister Joyce.

“This investment will translate into higher production and more demand for quality milk from Norco’s suppliers and I have no doubt will lead to better farm gate returns over the long term.

“In fact, in a major win for the company, Norco has recently had an order to supply an additional 90,000 litres of milk over three months to China. Norco’s commitment to being a reliable supplier of high-quality milk and milk products to China as well as its commitment to back itself should also be congratulated.

“Of course, improving our capacity to provide high-quality Australian milk will not meet all of the demand that China or Asia will have into the future - but through companies like Norco, we can contribute to the food needs of the region.

“Norco is a great example of a great cooperative working for farmers and is to be commended for showing others how to get better prices in another market. I encourage other farmers across Australia - whether you are in dairy or other industries - to take advantage of the cooperative structure as a mechanism to achieving better, fairer returns back through the farmgate.”