Keeping Australian dairy competitive in China: strengthening ChAFTA for the next phase of trade

The Australian Dairy Industry Council (ADIC) has lodged a submission to the Department of Foreign Affairs and Trade as part of the General Review of the China-Australia Free Trade Agreement (ChAFTA).

Developed with Dairy Australia, the submission sets out what the agreement has delivered for the dairy sector and where it now needs to improve.

Since it came into force in 2015, ChAFTA has supported strong growth in dairy trade with China, which remains Australia’s largest export market for dairy. Around one in five tonnes of Australian dairy exports now goes to China. In 2024–25, those exports were worth close to $1 billion.

That growth reflects more than tariff reductions. Demand in China continues to shift as incomes rise and diets change. Dairy is playing a larger role, and Australian products are well placed to meet that demand. Geography helps. So does a long-standing trade relationship and the market access secured under ChAFTA.

But the agreement has not stood still, and neither has the global market. Competitor countries have improved their access. Supply chains have become more time-sensitive. And regulatory processes have not kept pace with how trade actually works on the ground.

This submission focuses on those gaps. It looks at how ChAFTA is operating today for dairy exporters and where targeted changes would make a real difference, particularly in keeping Australia competitive, reducing friction at the border, and giving exporters more certainty when dealing with a fast-moving market like China.

Our submission sets out those priorities and the practical steps needed to strengthen the agreement for the next phase of trade.

More: Read our submission