Bega Cheese Limited
(ASX:BGA) has welcomed the Australian Government signing a free trade agreement with China.
The dairy company believes the deal is a key moment in the development and success of the Australian dairy industry and an excellent outcome.
China is Australia’s biggest trading partner and the latest agreement will see the removal of all tariffs on Australian dairy products, of up to 20 per cent in four to 11 years.
The Australian government advises China is the biggest buyer of Australia’s agricultural produce and the market was worth around $9 billion to the sector in 2013.
The Australian Bureau of Resource Economics and Sciences predicts China will account for 43 per cent of all growth world-wide in agricultural demand to 2050.
Bega Cheese reported a net profit of $66 million in the 2014 financial year.
