Farmers and traders across the nation are facing a new and frightening reality: milk from the continent’s largest milk processor, which exports to China, is being shipped to Australia.
The company is the biggest exporter of Australian milk to China in the world.
“We’re concerned that the milk will end up in China,” the Australian Dairy Industry Association said in a statement.
The ABC understands that the Australian Government is concerned about the potential impact of imported milk on the Australian dairy industry, which is estimated to account for more than $2 billion a year in the country’s economy.
Chinese dairy exports are one of the biggest challenges for Australia’s dairy industry.
In 2018, Chinese dairy farmers exported about half of their milk to Australia, according to data from the Australian Productivity Commission (APCC).
“There is a lot of interest in exporting Australian milk, especially in the dairy sector,” said Daniele De Pater, a senior adviser with the APCC.
“If you look at the dairy market in China, you can see that China’s growing appetite for Australian milk is a significant challenge for Australia.”
The APCC data shows that the number of Chinese dairy farms in Australia rose from 4,935 in the mid-1990s to about 16,500 in 2018.
The APACC says the growth rate of Chinese farms is expected to continue to grow, while the Australian market is expected grow from just over 12 million litres a year to 25 million litres.
The export boom is the latest twist in a turbulent year for the Australian milk industry.
Following the introduction of the carbon tax, farmers across the country were forced to import their milk.
The carbon tax was imposed by the Federal Government on June 30, 2018.
“It’s been a very tough year for Australian farmers,” APAC chief executive Daniella Di Cenci said.
The Australian Dairy Farmers Union says the carbon taxes will only be effective if farmers pay a fixed price to the Federal government. “
In terms of the milk supply, there are still a lot in supply, but at this stage, it’s very difficult to export.”
The Australian Dairy Farmers Union says the carbon taxes will only be effective if farmers pay a fixed price to the Federal government.
This will mean some farmers will be paying an exorbitant amount of money to pay for the carbon offsets.
The dairy industry in Australia is one of Australia’s largest agricultural sectors, with $13 billion worth of sales in the year ending September 2018.
Dairy products are the largest export sector to China.
Dairy exports account for nearly a third of Australia the country exports $12.8 billion worth goods and services to China annually.
Australia’s agriculture minister, Peter Dutton, has promised to review the carbon levy to ensure it doesn’t impact on the export industry.
“I’m confident that this government will continue to support Australian dairy farmers and ensure that the carbon pricing and offset system is in place to ensure that Australia’s farmers are able to keep their farms and milk processing businesses going and continue to export to China,” he said in November.
The Australian Greens have also called on the Government to review its carbon levy.
“The Australian dairy market is one where we can continue to sell Australian milk and milk products and to export them safely and responsibly,” Greens Senator Scott Ludlam said.
The Greens are also calling for the Government’s emissions trading scheme to be reviewed.
“Our industry, and indeed Australia’s entire economy, depends on our exports of milk to the Chinese market,” Greens senator Scott Ludman said.