Australian Dairy Industry Council (ADIC) Chair Ben Bennett said it was clear negotiations were effectively complete, but critical dairy outcomes remained unclear and appeared heavily weighted in favour of the European Union.
“We think the signing is imminent – the indications we’re getting are that the deal is essentially there,” Mr Bennett said.
Mr Bennett told The Australian the dairy sector once again appears to be left carrying the burden in this agreement, “with more risk, more imports and fewer protections, for very little in return”.
“Dairy is going under the bus, and it's being driven by Federal Government.”
The industry has warned that the proposed agreement would loosen Australia’s remaining safeguards on European dairy imports, particularly cheese, in a market already exposed to heavily subsidised products from the EU.
Australia currently imports about 80,000 tonnes of dairy from the EU valued at $877.4 million, up almost nine per cent year-on-year, while exporting only about 1600 tonnes in return, valued at $55 million.
“This is not a level playing field,” Mr Bennett said.
“European dairy producers receive tens of billions of dollars in subsidies, yet Australian farmers are being asked to compete without such support.”
ADIC is also concerned about the potential removal of the $1.20 per kilogram tariff on imported cheese, which the industry describes as the last meaningful buffer against a surge of low‑priced European product.
“The risk is not theoretical. The EU is the world’s largest cheese producer by a country mile, and surplus product will inevitably be pushed into markets like Australia if barriers are lowered.”
Beyond imports, the dairy industry remains alarmed by the prospect of geographical indications (GIs) restricting the use of long‑established dairy names such as parmesan and feta, which underpin many Australian processing businesses and regional jobs.
ADIC Deputy Chair John Williams said the industry cannot accept an overseas regulatory regime being imposed on Australian businesses through geographical indications.
“Banning long-used names like parmesan and feta would hit local manufacturers, confuse consumers and deliver no clear benefit to Australia,” Mr Williams said.
“We need safeguards that actually work.”
“With European Commission President Ursula von der Leyen visiting Australia in the coming weeks, we are ready to work with government in good faith on a deal that is fair, enforceable and future-ready.”
