Pitch for premium dairy product

WestVic Dairy chairman and Kangertong dairy owner, Ms Dwyer, said the agreement that had been 10 years in the making would change the face of the Australian dairy industry.

"Change brings trade-offs with both challenges and opportunities - one of those challenges is that the face of the Australian dairy industry is changing faster than ever so it is important dairy farmers are able to navigate that level of change," Ms Dwyer said.

"You can only win the future if you invest in it."

She said industry bodies and representatives such as Dairy Australia and WestVic Dairy would need to recognise and deliver on priority areas farmers needed support in to drive production and improve production.

"If we accept that there will be significant change in South West Victoria (which produces 23 per cent of the nation's milk) then we need to identify and change areas where farmers need support," she said.

While Ms Dwyer said she was unsure on when the benefits would be felt at the farm gate, she expected the deal to level out market volatility dairy farmers had experienced in the past decade.

"We can't hope to supply the demand that exists in China let alone the rest of Asia – the role for Australian dairy is to provide a premium product into premium markets at a premium price, that is the level we need to play at," she said.

"Of course to play at that level we need to ensure we continue to produce the highest quality and safest product in the world."

She expected exports of infant formula to China would be one of several high value dairy products to increase through the FTA.

Meanwhile managing director of New Zealand owned Fonterra Judith Swales (pictured) said there was opportunity for dairy farmers to increase production by converting land, growing herds, improving water accessibility and improving crop management.

"The FTA presents all sorts of opportunities. For our Australian farmers, it will give them the confidence to invest in their businesses and confidence that the whole industry is supporting them in providing access to our biggest export market," she said.