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China’s demand for Australian dairy to keep growing

China’s demand for Australian milk and other products like bottled milk will continue to grow as its middle class grows, according to a high ranking Chinese banker.

Bank of China executive vice-president Gao Yingxin told a trade conference in Sydney yesterday that Australia has huge potential to further develop its agricultural sector and increase exports to China.

“With more and more emphasis put on food safety, nutrition and health, China boasts one of the world’s largest and fastest growing milk market,” Yingxin said.

“Between 2005 and 2013, the children’s milk market in China grew at an average of 28 per cent and the recently adopted two-child policy will create even more business opportunities.”

Australian dairy farmers are currently dealing with the stress of decreased farmgate milk prices and for many of them survival is far from assured.

James Pearson, CEO of the ACCI (which co-hosted the event along with the Bank of China) told the ABC that the export opportunity may help some of them.

“For those that are able to do it and have the confidence and capacity to do so, export does represent another opportunity, particularly for firms who are struggling at the moment,” he said.

Federal Trade and Investment Minister Steve Ciobo told the conference that Asia’s middle class will increase sixfold, to over 3 billion by 2030.

“And with that larger consumer base, with the more refined tastes that grow from that consumer base, including of course a strong emphasis that there is out of the Chinese market on clean and green agricultural produce, we know that Australia can meet that demand,” he said.

That demand is likely to extend beyond dairy products to other food products.

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