CHINA’S

The Northern Star - Northern New South Wales Rural Weekly - - News -

end­less de­mand for Aus­tralian dairy and baby for­mula is be­hind the but­ter price rises – and it will soon force bak­eries to switch from us­ing but­ter to mar­garine to sur­vive.

Sausage rolls and crois­sants will start tast­ing dif­fer­ent as bak­eries deal with a 30 per cent in­crease in the cost of but­ter.

The value of dairy ex­ports to China in 2016-17 was about $403 mil­lion, up from $144m five years prior.

IBISWorld fig­ures also re­veal China is tak­ing 67 per cent of Aus­tralia’s $45m in­fant for­mula ex­port mar­ket, com­pared to 26 per cent five years ago.

IBISWorld se­nior an­a­lyst Sam John­son said there is a link be­tween China’s in­sa­tiable de­mand for in­fant baby for­mula and the price of our but­ter.

“Many dairy pro­ces­sors have di­verted pro­duc­tion towards more value-added prod­ucts that at­tract a pre­mium,” he said.

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