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Fortified Milk Import-Export Relationship


Milk is among the products that fortify the Chinese–Australia trade relations. According to Dairy Australia, China is the fastest growing dairy export market for Australia and has become the largest export market for the continent country, with exports increasing by more than 300 per cent from 2007 to 2014.[1] The trend should not come as a surprise because Chinese consumers consider dairy products from Australia as green, safe and clean.[2] The demand for dairy products in China, meanwhile, has been increasing. Customs statistics show that China imported 2.0519 million tons of dairy products in 2014, exhibiting a year-on-year increase of 12.30 percent and with a total value of US$ 8.487 billion.[3] The US Department of Agriculture office in Beijing gave a forecast of 400,000 tonnes of whole milk imports for 2016.[4]

Trade agreements between China and Australia have now been put in place.

On 20 December 2015, the China-Australia Free Trade Agreement (more commonly known as ChAFTA) entered into force.[5] ChAFTA will cause 95 per cent of tariffs on Australian exports to be eliminated, while Chinese investments in Australia will no longer be hampered by too many restrictions and more Chinese citizens on working holidays will be issued with Australian visa.[6]

The rapidly increasing demand for dairy products in China, the excellent reputation of Australian dairy products and the ratification of ChaFTA will create the need for a project that will allow Chinese consumers enjoy agriculture and dairy products from Australia by letting them directly subscribe to farm produce in Australia and have the produce delivered via plane to a kitchen table in China. The project will add to the fortification of trade relations between China and Australia.