Dairy sidelined in the Un-Fair Trade Agreement (UFTA)
The newly signed Australia–European Union Free Trade Agreement will disadvantage the Australian dairy industry, intensifying import competition and adding to the already significant operating pressures facing local dairy processors and farmers.
The industry’s peak national body, the Australian Dairy Industry Council (ADIC), said the agreement fails to deliver reciprocal and fair outcomes for Australian dairy, while increasing exposure to imports and imposing a European-style regulatory naming regime on Australian consumers and processors alike.
“This is neither a free nor fair deal for Australian dairy and it is a worse deal than what was on the table in 2023,” ADIC Chair Ben Bennett said.
“In fact it should be relabelled the Un-Fair Trade Agreement (UFTA).
“It is unfair on many fronts – most notably it expands access to heavily subsidised European dairy imports, while failing to secure reciprocal access for Australia’s exports to the EU.
New data shows the imbalance in the trading relationship is already stark.
In 2025, Australia imported 76,821 tonnes of EU dairy valued at more than $980 million, while exports to the EU totalled just 134 tonnes worth $29 million.
“The numbers speak for themselves – there’s nearly a billion dollars of subsidised EU imports compared to a limited $29 million of unsubsidised Australian exports,” Mr Bennett said.
The agreement imposes the EU’s geographical indication naming regime on Australia, restricting the future use of widely recognised product names such as feta, gruyere and romano, while also removing one of Australia’s most significant dairy import tariffs on cheese.
“We are being asked to give up established commercial freedoms without securing meaningful market access,” Mr Bennett said.
ADIC Deputy Chair John Williams said the timing of the agreement is made more concerning given converging pressures.
“Competitiveness is not determined by one policy in isolation, it is the combined impact of trade settings, regulation, energy and global costs,” he said.
With dairy contributing $18.5 billion to the national economy and supporting more than 70,000 regional jobs, the consequences extend well beyond the sector itself.
“If we want value-added manufacturing to stay in Australia, policy settings must support competitiveness,” Mr Williams said.
ADIC also called on the Australian Government to urgently back a dedicated ‘buy Australian dairy’ program to address the ongoing import issues, now intensified by this one-sided Australia-EU FTA.
“The government has made its decision on this deal,” Mr Bennett said.
“The focus now must be on ensuring the domestic market supports Australian dairy and this deal does not further undermine the industry or our nation’s food security and sovereign food production.
“Trade policy and regulatory policy must pull in the same direction. Right now, they are not, and our industry is paying the price.”
“This is neither a free nor fair deal for Australian dairy and it is a worse deal than what was on the table in 2023,” ADIC Chair Ben Bennett said.
“In fact it should be relabelled the Un-Fair Trade Agreement (UFTA).
“It is unfair on many fronts – most notably it expands access to heavily subsidised European dairy imports, while failing to secure reciprocal access for Australia’s exports to the EU.
New data shows the imbalance in the trading relationship is already stark.
In 2025, Australia imported 76,821 tonnes of EU dairy valued at more than $980 million, while exports to the EU totalled just 134 tonnes worth $29 million.
“The numbers speak for themselves – there’s nearly a billion dollars of subsidised EU imports compared to a limited $29 million of unsubsidised Australian exports,” Mr Bennett said.
The agreement imposes the EU’s geographical indication naming regime on Australia, restricting the future use of widely recognised product names such as feta, gruyere and romano, while also removing one of Australia’s most significant dairy import tariffs on cheese.
“We are being asked to give up established commercial freedoms without securing meaningful market access,” Mr Bennett said.
ADIC Deputy Chair John Williams said the timing of the agreement is made more concerning given converging pressures.
“Competitiveness is not determined by one policy in isolation, it is the combined impact of trade settings, regulation, energy and global costs,” he said.
With dairy contributing $18.5 billion to the national economy and supporting more than 70,000 regional jobs, the consequences extend well beyond the sector itself.
“If we want value-added manufacturing to stay in Australia, policy settings must support competitiveness,” Mr Williams said.
ADIC also called on the Australian Government to urgently back a dedicated ‘buy Australian dairy’ program to address the ongoing import issues, now intensified by this one-sided Australia-EU FTA.
“The government has made its decision on this deal,” Mr Bennett said.
“The focus now must be on ensuring the domestic market supports Australian dairy and this deal does not further undermine the industry or our nation’s food security and sovereign food production.
“Trade policy and regulatory policy must pull in the same direction. Right now, they are not, and our industry is paying the price.”
