The deal means producers will have increased flexibility on sourcing the dairy they use for their products.
The UK’s International Trade Secretary Dr Liam Fox MP met with China’s General Administration of Customs on August 23 to reach the five-year agreement.
With demand for most dairy categories growing by more than 20% each year in China, it is one of the country’s fastest growing sectors, and is seen as a lucrative market for international producers.
Improving relations for business
The UK exported more than £96m ($123m) of dairy products to China in 2017, and the UK government said there has been significant interest in the market following the visit of the Prime Minister and Dr Fox earlier this year.
The UK government said it is determined to open up agricultural opportunities to British businesses.
International Trade Secretary Dr Liam Fox MP 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.”
Environment Secretary Michael Gove MP, 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.”
Her Majesty’s Trade Commissioner for China, Richard Burn, added imports into China of products such as yogurt, flavored milk and cheese have seen rapid growth as Chinese consumers increasingly associate these items with nutrition and wellbeing.