Australian farmers demand dairy be carved out of EU free trade deal
ADF is seeking a dairy-specific exemption from new tariff concessions on European dairy imports and from restrictions on established Australian dairy product names. “The EU has protected its sensitive farm industries. Australia must do the same for dairy,” Bennett said.
In 2025-26, Australia imported 71,912 t of European dairy products worth A$858 million, while exporting only 349 t worth A$28 million to the EU. This amounts to an A$830 million dairy trade deficit before the agreement even comes into force.
Under the agreement, Australia will phase out its A$1.22 per kilogram tariff on European cheese over three years. Meanwhile, Australian exports of butter, skim milk powder and high-protein whey to the EU will remain restricted by small duty-free quotas and substantial tariffs beyond them. The agreement also protects 56 European dairy geographical indications, restricting Australian cheesemakers, including future producers, from using certain established cheese names.
Bennett also noted that European farmers are supported by the EU’s Common Agricultural Policy, which has €386.6 billion in funding for 2021–2027. “That’s not a level playing field. It’s a one-way street,” he said. According to him, more imports will increase pressure on Australian processors and farmgate demand, affecting regional jobs and the country’s food security.
“We’re not against trade. We’re against Minister Farrell’s bad deal,” Bennett said.
DairyNews.today previously reported that the Australian Dairy Industry Council (ADIC) had called on Parliament to reject the EU agreement in its current form. In ADIC’s assessment, removing the tariff on European cheese will affect more than the specialty cheese segment, as about 40% of Australia’s milk is used to make cheese. One in four dairy products consumed in Australia is already imported, and 26 Australian dairy factories have announced closures over the past four years.
