#Milk to china could save local dairy farmers

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A PLAN to export 20 million litres of milk to China a year could save the local dairy industry.

Dairy co-operative Norco have begun exporting thousands of litres of fresh milk to the Chinese market where the product is expected to sell for up to $8 per litre.

The two years in the making export agreement will see locally produced milk get through Chinese quarantine and on to shelves within seven days.

Norco contracted dairy producer Steve Blanch, from Mt Walker, said the opening of the Chinese market had the potential to increase the on-farm price of milk and keep the local industry alive.

«We’re absolutely following this thing with Norco,» Mr Blanch said.

«In the first 12 months they’re saying 20 million litres will be exported to China. And that’s just in the first year.

«That’s about one third of the Coles home brand contract. So it’s a big new player in the market place.»

Mr Blanch said Norco’s first shipments to China had seen 4000 litres per week exported to test the market.

«With that amount they don’t need milk from everyone. But the way they’re talking, they’re going to be ramping things up.

«I don’t think they’ve got a concern they can’t sell it. They’re targeting the middle class there and that’s booming.»

The New Zealand dairy industry has made inroads into the Chinese market in recent years with milk dubbed the country’s «white gold».

However, the industry took a hit after China stopped New Zealand dairy imports after a bacterial strain that could cause botulism was found in some powdered milk products.

Mr Blanch said Australian products and produce still had a good name in China and had an opportunity to break into the market.

«Australia still has a pretty good name in China,» he said. «It only takes one stuff up to undo years of good work.»

Norco’s decision to move into the Chinese market has also been supported by dairy farmers in the Lockyer Valley.

Lockyer Valley mayor Steve Jones said the move could keep dairy farmers on their feet.

«The opportunities for dairy products into Asia are huge and I’ve seen first-hand fresh milk selling in Asian supermarkets for the equivalent of $13 Australian,» he said. «This could prove a huge boost to local dairy farmers who have been copping the rough end of the pineapple from processors and ultimately supermarkets for too long.»

Source: The Crhonicle

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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