Australia’s quality dairy products belong on the world stage. Strong foreign market access as well as investment in local markets is key to increasing demand for Australia’s quality dairy products. Australia is the fourth largest global exporter of dairy and recognised as holding ‘world’s best’ status in manufacturing nutritious dairy products. ADPF advocates for the Australian dairy industry to ensure a fair go on the world stage.
COVID-19 has highlighted the importance of food security, and placed renewed focus on local manufacturing and domestic self-sufficiency.
Currently, domestic sales account for approximately 65% of milk production, so continued investment in improving the Australian dairy supply chain is more critical than ever. This was recognised by the Federal Government in its recent announcement of a Modern Manufacturing Strategy, which will see $1.5 billion provided over five years to build competitiveness, scale and resilience in the Australian manufacturing sector.
In addition, Australian dairy is an export over-achiever. Australia accounts for only 2% of estimated global milk production, but our exports make up a 6% share of the world dairy trade. Free trade provides a significant opportunity to boost international demand for Australian dairy.
To optimise local and international trade and market access, ADPF advocates for:
In respect to trade and foreign market access, the Australian dairy industry’s focus will be on the Europe Union (EU) in 2021.
In a cause for concern, under a demanding Geographical Indications (GI) system, the EU is pushing for exclusive use of 172 food names, which runs the risk of Australian dairy producers losing their right to common cheese names including feta and parmesan.
The Australian dairy industry believes that the EU’s demands are anti-competitive, overly restrictive and fail to take into proper account Australia’s status as a multicultural nation and our significant European heritage. The Australian Dairy Industry Council (ADIC) has calculated that the EU’s demand to restrict cheese and dairy products names could put $650 million worth of local product sales in jeopardy.
The Australian dairy industry has long been a supporter of an open international trading environment. We welcome trade agreements that create free and fair market access and trade opportunities between countries. We want to see this continue in 2021.
The Department of Agriculture, Water and the Environment (DAWE) has commenced a review of the biosecurity risks associated with importing dairy products for human consumption in Australia. This review will consider the biosecurity risks associated with importing (from any country) dairy products for human consumption manufactured from milk obtained from cattle, buffalo, sheep and goats.
The Australian Dairy Industry Council (ADIC) will determine a response and develop a submission for the review in March 2021. Check back for more details then.
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