Infant Formula For US Chinese

With China’s baby formula market worth an estimated AU$17 billion and the demand for high quality Australian dairy products increasing, it is no surprise that China is becoming a key focus for the Australian dairy industry and being supported by other countries including the USA.

The China-Australia Free Trade Agreement (FTA) signed in November last year (which was almost a decade in the making) has seriously opened the door for Australia to tap into this boom. With dairy experts saying the FTA could be a ‘once-in-a-generation game changer’ for local producers, and particularly significant for Australian dairy farmers according to Peter McGregor, Managing Director – Head of Industrials, Food, Beverage & Agriculture, Commonwealth Bank.

Many Australian producers of dairy producers that have begun launching new products in the Chinese market, and mining magnate Gina Rinehart has also jumped on the opportunity by recently investing AU$500 million in the industry.

There is no doubt New Zealand has an advantage by having their foot in the door first, but with a recent scare with New Zealand produced Infant Formula that created a significant set back for them. If Chinese dairy demand continues growing at the rate it is going there is more than enough room for Australia exporters and their US partners to succeed.

Australia Has Dairy Products Of The Highest Quality, But Does It Have Enough Capacity To Supply China?

if Australia maximises the China Free Trade Agreement, really understands the Chinese market and leverages Australia’s high quality product and brand we could have a real shot at growing the Australian dairy industry and competing on an international scale. Beijing-based Austrade Trade Commissioner Susan Corbisiero says: 

“In the face of competition from the US, Europe and New Zealand, winning in China requires an investment in brand and relationship building.”

We have the pleasure of hearing two of Australia’s dairy industry leaders at our upcoming Maximising Agribusiness Competitiveness Conference. Ian Halliday, Managing Director of Dairy Australia and Angus Taylor, the brainchild behind dairy giant Fonterra will be sharing their insights and strategies for growth.

Australia exporters need to capitalize and increase production to become a major supplier to the China Infant Formula and milk products boom.

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