Brian Tessmann
QDO president Brian Tessmann
May 1, 2014

The Queensland Dairyfarmers’ Organisation (QDO) has applauded the news this week from farmer owned co-op Norco that the process for taking fresh milk from Australia and landing it into China has become simpler.

A partnership between Norco, Dairy Connect NSW and international exporting company PGS has successfully slashed the time it takes to land fresh milk into China from up to three weeks to within seven days.

“This could be a real game changer,” QDO president Brian Tessmann said.

“This is especially the case for the northern dairy industry, including NSW and Queensland, where we predominantly specialise in fresh drinking milk production for the domestic market and currently have very limited capacity for other export avenues such as milk powder or cheese.

“With the news that Norco is planning commercial shipments of fresh milk soon, this will help open another, potentially major high value, export door for Norco farmers.

“Most importantly, we hope that it starts the much-needed path of diversification of markets for the northern dairy industry.

“The Northern dairy industry desperately needs new market avenues that help farmers gain better returns at farm gate, create more competition for Queensland fresh milk and challenge the ‘milk price war’ and supermarkets selling fresh milk at the ridiculous price of $1 per litre which has caused market failure in our region.

“If ventures such as this take off – which I believe they have enormous potential to do – it will very quickly send a message to the major supermarkets that they cannot take Queensland fresh milk or dairy farmers for granted.”

Mr Tessmann said the industry was realistic that fresh milk exports to Asia would not solve the challenges facing the industry overnight, but he also pointed to the enormous potential in the growing Asian middle class.

“Today, a major conference in Cairns is looking at this very issue of servicing the rapidly growing demands for clean, green, Australian produce in China and Asia,” he said.

“There is a very strong and increasing desire to grow export markets, both in Australia and in Asia, and QDO continues to applaud all those involved in these ventures.

“QDO is keen to support, and is continuing to work with, governments and industry partners on similar such ventures that can assist the Northern dairy industry to rebuild and to have a brighter future.”