Global Food Companies Brace for Potential Chinese Retaliatory Tariffs on EU Dairy and Pork Imports
Source: The DairyNews
Global food companies, from dairy producers to pork exporters, are on high alert for possible retaliatory tariffs from China following the European Union's recent decision to impose anti-subsidy duties on Chinese-made electric vehicles (EVs), writes Reuters.
China's state media has reported that domestic companies are preparing to request investigations into some EU dairy and pork imports over anti-subsidy or anti-dumping concerns, which could result in prolonged trade suspensions.
"If you have additional trade barriers, it could cause reshuffling of global markets," said Kimberly Crewther, executive director of the Dairy Companies Association of New Zealand. New Zealand, the world's largest exporter of dairy products, is also a production base for foreign companies, including French dairy producer Danone. "We always prefer to see situations where trade is stable and certain ... Markets don’t like uncertainty," Crewther added.
In 2023, the EU was China's second-largest source of dairy products, accounting for at least 36% of the total value of imports, following New Zealand, according to China customs data. Australia was the third-largest exporter.
While it remains unclear which products China might target for retaliation, whey powder, cream, and fresh milk were among the top export items in the EU's €1.7 billion ($1.8 billion) worth of dairy exports to China last year, according to data from the European Commission's Directorate-General for Agriculture and Rural Development, which cited Eurostat. Countries including the Netherlands, France, Germany, Ireland, and Denmark have significant dairy industry exposure to the Chinese market.
Cristina Alvarado, data and insights commercial manager at New Zealand's Exchange, noted that Chinese tariffs or trade barriers against EU dairy could help New Zealand expand its market share. Major New Zealand producers Fonterra and A2 already have substantial trade with China, benefiting from free trade agreements that make their imports duty-free.
China imported $848 million worth of dairy products from Australia last year, according to China's customs data. Dairy imports from New Zealand reached $5.52 billion in 2023, nearly half of the total value of its dairy imports.
"If you have additional trade barriers, it could cause reshuffling of global markets," said Kimberly Crewther, executive director of the Dairy Companies Association of New Zealand. New Zealand, the world's largest exporter of dairy products, is also a production base for foreign companies, including French dairy producer Danone. "We always prefer to see situations where trade is stable and certain ... Markets don’t like uncertainty," Crewther added.
In 2023, the EU was China's second-largest source of dairy products, accounting for at least 36% of the total value of imports, following New Zealand, according to China customs data. Australia was the third-largest exporter.
While it remains unclear which products China might target for retaliation, whey powder, cream, and fresh milk were among the top export items in the EU's €1.7 billion ($1.8 billion) worth of dairy exports to China last year, according to data from the European Commission's Directorate-General for Agriculture and Rural Development, which cited Eurostat. Countries including the Netherlands, France, Germany, Ireland, and Denmark have significant dairy industry exposure to the Chinese market.
Cristina Alvarado, data and insights commercial manager at New Zealand's Exchange, noted that Chinese tariffs or trade barriers against EU dairy could help New Zealand expand its market share. Major New Zealand producers Fonterra and A2 already have substantial trade with China, benefiting from free trade agreements that make their imports duty-free.
China imported $848 million worth of dairy products from Australia last year, according to China's customs data. Dairy imports from New Zealand reached $5.52 billion in 2023, nearly half of the total value of its dairy imports.
