April 1, 2005

Australia's dairy heifer exports to China curbed by keen competition

Faced with keen competition from other countries, Australia's dairy heifer exports to China were expected to decline in 2005.

With other countries seeking to penetrate the profitable Chinese export market, Australia's record export of 70,000 head in 2004 was unlikely to be repeated this year. However, there were hopes to realise a sustainable trade of 40,000 ¨C 60,000 head every year.

Boasting of a strong dairy industry, Uruguay is one of the strongest competitors for Australia's dairy farmers.

In early March, China demanded more comprehensive breeding information about export heifers from Australia, and threatened export tariffs of up to US$800 an animal.

And if Australia's dairy heifers were not up to China's expectations, they could be forced out of the lucrative market.