DAIRYFARMERS in SA are expected to see big benefits as a result of the free trade agreement with China.
South Australian Dairyfarmers Association president David Basham said the signing of the deal between Australia and China on November 17 was a win for local producers.
The FTA will eliminate tariffs on all dairy product tariffs within 11 years while powdered milk and infant milk formula will lose its 15 per cent tariff in four years.
"With the quick reduction on tariffs for powdered milk, there is certainly an opportunity for Australia to get into that space and meet the growing needs in China," Mr Basham said.
He said the reduced tariffs on fresh milk would also see benefits, particularly within SA.
SADA had already been exploring Chinese markets for its own brand, SADA Fresh, and Mr Basham was hopeful the tariff reduction would help with negotiations.
"This may not deliver money into farmers' pockets immediately but it will certainly help the industry to grow its infrastructure," he said.
The dairy industry had been particularly keen for an FTA with China.
Australian Dairy Industry Council chairperson Noel Campbell said the deal placed the industry on a more equal footing with neighbour and competitor New Zealand.
"Australian dairy has been a leading commodity in the negotiations with China; we have campaigned long and hard for a positive outcome and are thrilled to see this come to fruition," he said.
Dairy will not be the only industry in the state to benefit from the China FTA.
* Full report in Stock Journal, November 20, 2014 issue.