Tom Vilsack, president and CEO of US Dairy Export Council (USDEC), said the agreement presents significant opportunities for milk, cheese, infant formula and dairy ingredient exports.

He said: “China is already the world’s largest importer, even though consumption per capita remains far below that of the US, EU and even its Asian neighbours like Japan and South Korea. The potential to increase dairy exports there is tremendous.”

The US shipped $384m worth of dairy exports to China last year, making it the third largest dairy market for the US, behind Mexico and Canada. Market access, however, has been an issue, with the new agreement taking two years to get over the line.

Safety standards

In 2014, the Chinese implemented Degree 145, which required exporting countries to register and certify facilities to ensure the plants meet Chinese food safety standards.

The new agreement will allow third-party safety certification of US dairy processing plants that will then be allowed to send dairy products to China. It should create Chinese market access for more than 200 dairy exporters in the short term and paves the way for additional players in the future.

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