13 Aug 2009

Scepticism over impact Chinese dairy announcement

7:46 am on 13 August 2009

A Canterbury-based live animal exporter is yet to be convinced that a Chinese Government announcement encouraging dairy companies to set up their own farms will result in an increase in dairy cattle exports from New Zealand.

New Zealand Trade and Enterprise says China has imported almost 4000 dairy cattle from New Zealand already this year and as a result of the Government statement it expects that demand to grow.

China's Dairy Industry Policy, which follows last year's San Lu milk contamination scandal, includes new raw milk regulations and rules around the manufacture of formula milk powders.

But Ian MacDonald, managing director of Xcell Livestock in Kaiapoi, says over the past two years business to China has been virtually non-existent.