The organisation, which represents both dairy farmers and processors, said the industry must not be treated as an “afterthought” in any trade agreement and has called for greater scrutiny of the deal.
According to ADIC between 2025 to 2026, Australia imported $858 million of European dairy products, which equates to 71,912 tonnes, while exporting just $28 million, or 349 tonnes, to Europe.
The council said the figures represent a $830 million dairy trade deficit under the current trading arrangements.
ADIC Chair Ben Bennett said the imbalance demanded attention and called on the government to reject the deal in its current form.
“The debate over this agreement has focused heavily on its implications for Australian agriculture, but the specific consequences for sectors like dairy need much greater scrutiny,” Bennett said.
“The test for Parliament should be simple: does this agreement deliver fair and reciprocal outcomes for Australian dairy?”
Under the proposed deal, Australia’s remaining $1.22 per kilogram out-of-quota tariff on EU cheese would be phased out over three years, while some Australian dairy exports to Europe would remain subject to quotas and above-quota tariffs.
ADIC argues that imbalance does not provide Australian dairy with sufficient reciprocal market access.
Deputy Chair John Williams said the impact would extend beyond speciality cheese.
He highlighted that about 40% of Australia’s milk is used to make cheese, meaning increased competition in the cheese market will have repercussions through the Australian dairy supply chain.
“This is also about the cheese on pizzas, in sandwiches and burgers, then we have UHT milk, as well as the dairy ingredients and nutritional products – high-volume markets where purchasing decisions can come down to price,” Williams said.
“Australian dairy farmers and manufacturers are competing in those markets while carrying some of the highest high energy, labour, transport and regulatory costs.”
“Further opening the Australian to subsidised European dairy risks putting additional pressure on Australian milk production, processing and regional jobs.”
ADIC said that one in four dairy products consumed in Australia is already imported, while 26 Australian dairy factories have publicly announced closures during the last four years.
“Australia is being asked to open our market further, without securing fair and reciprocal outcomes for Australian dairy,” Bennett said.
“Before supporting this agreement, Parliament should be satisfied Australian dairy farmers and manufacturers receive a commercially meaningful benefit in return.
“Dairy cannot be an afterthought in a trade agreement that will shape our relationship with Europe for decades.”
