SA Dairyfarmers' Association


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Posted on November 14, 2017

ADIC Media Release - Dairy Industry welcomes trade deal with Peru

The Australian Dairy Industry Council (ADIC) has welcomed news this week that the Australian
Government has successfully negotiated a new trade deal with Peru.

The deal will see Australia receive improved market access for dairy in the form of an export basket
quota of 7,000 tonnes of dairy product in the first year of implementation, rising by 300 tonnes per
annum and peaking at 10,000 tonnes in the 10th year.

ADIC Chair, Terry Richardson, said the new agreement was a positive step forward for the industry
and will provide greater opportunities for Australia to expand its export capacity.

“This is a good outcome for Australian dairy farmers and the industry in general. Historically, Peru has
been a sensitive market for dairy imports, so this is a positive achievement,” Mr Richardson said.

“The Australian dairy industry is recognised worldwide for producing sustainable, premium quality
products and we’re excited that this new deal will provide access to a growing market.”

Mr Richardson noted that the initial Country Specific Quota (CSQ) volume exceeds recent trading
volumes, which have varied considerably over the past two decades from a high of 5,931 tonnes of
dairy products exported in 2002 to a low of 92 tonnes in 2014.

All Australian dairy exports to the emerging South American market will be subject to a CSQ, in line
with similar agreements Peru has in place with the EU and United States.

The new agreement will provide a greater degree of certainty for Australian exporters and ensures
they will have improved access to a highly competitive market place, as well as placing Australia on a
more even playing field with international competitors.

“International trade is essential for the growth of our industry. Increased market access promotes
stronger demand for Australian products, which helps underpin local farmgate milk returns and
provides a framework for profitable industry growth,” Mr Richardson said.