UK dairy sector gets major boost with China’s £240m deal

The UK dairy sector has further strengthened its position in the international market as China agreed to import its dairy products produced with milk sourced from third countries.

Under the terms of the £240m agreement, China will accept imports from the UK for the next five years.

The deal was finalised after the UK’s International Trade Secretary Dr Liam Fox met with China’s General Administration of Customs.

Fox said: “This is my fourth visit to China this year and I’m delighted to see the completion of this deal, bringing significant benefits to dairy producers across the UK at a time when British food and drink exports are at a record high.

“China is the UK’s fifth largest trading partner, with exports growing by 28.5% in 2017 when compared with the previous year.

“As an international economic department, DIT is working with our partners across the world to liberalise international trade by removing barriers to commerce, helping businesses and ensuring greater choice for consumers worldwide. Today’s announcement will boost our £67.5bn trading relationship even further.”

The deal will give UK dairy producers flexibility to source milk from other nations in order to produce their products.

Last year, the UK exported more than £96m dairy products to China, and the demand for dairy products in the country is increasing by more than 20% each year.

UK Environment Secretary Michael Gove said: “Our world-class dairy producers already export £1.7bn worth of produce per year.

“This milestone will help to unlock the UK food and drink industry’s full potential forging new trading relationships around the globe. This step shows we can be a truly outward-looking Britain outside the European Union.”