Media Release

Aussie milk exports to China set to grow

19 November 2014

Norco’s $4.5 million upgrade to its dairy processing facilities is an example of the increased business confidence among Australian agricultural companies since the Coalition came to office.

Minister for Agriculture, Barnaby Joyce, said recent major market access breakthroughs and the announcement that we have concluded a free trade deal with China were critically important in securing Australian farmers a profitable future.

“With the Coalition Government focussed on reducing trade barriers and improving market access for Australian agricultural products, our agri-food sector has a firm foundation on which to plan and invest for a profitable future.

“The Free Trade Agreement agreed to by Prime Minister Tony Abbott and Chinese President Xi Jingping contains significant tariff reductions for liquid milk and will deliver benefits for not just Norco, but for dairy producers and manufacturers right across Australia.

“Norco should be congratulated for their success to date both in Australia and overseas. Having pioneered a cold supply chain to facilitate exports of fresh milk into China, Norco is well placed to take advantage of any further improved market access into China and is now investing $4.5 million to upgrade its Raleigh dairy processing facility in readiness to meet increased demand from this key trading partner.

“This investment will translate into higher production and more demand for quality milk from Norco’s suppliers and I have no doubt will lead to better farm gate returns over the long term.

“In fact in a major win for the company, Norco has recently had an order to supply an additional 90,000 litres of milk over three months to China.

“Norco’s commitment to being a reliable supplier of high quality milk and milk products to China as well as its commitment to back itself should also be congratulated.

“Having strong business confidence is integral to building trade capacity and I am pleased that the Coalition Government is creating the conditions needed for our agri-food and farm sectors to grow and thrive.

“Of course, improving our capacity to provide high quality Australian milk will not meet all of the demand that China or Asia will have into the future - but through companies like Norco, we can contribute to the food needs of the region.

“Norco is a great example of a great cooperative working for farmers and is to be commended for showing others how to get better prices in another market. I encourage other farmers across Australia - whether you are in dairy or other industries – to take advantage of the cooperative structure as a mechanism to achieving better, fairer returns back through the farmgate,” Minister Joyce said.