A NEW distribution agreement signed this week will see dairy co-operative Norco's fresh milk to China program supplying up to 50,000 litres a week from October.
Since Norco sent its first air freight shipments of just 4500 litres in one-litre bottles in May, business has grown phenomenally thanks to consumer demand for a safe, high-quality product grown on North Coast farms.
The new deal is also set to expand Norco's fresh milk product range in China, and the co-op is now upgrading production capacity to cope.
This week, with Norco's chief executive Brett Kelly in China as part of an Australian delegation accompanying Agriculture Minister Barnaby Joyce's farm export promotion visit, about 30,000L went to Shanghai.
The $7/L to $9/L retail price tag has proved no impediment to sales, said Norco chairman Greg McNamara.
Feedback from Norco's Chinese partners indicated NSW milk was "loved" and there was a high percentage of repeat sales.
The milk sells in supermarkets, at small stores and online.
Specific farms have been assessed to supply milk for the China deal and testing of additional farms has begun to ensure sufficient future volumes.
Participating suppliers are typically receiving a premium over the domestic market for meeting additional quality component standards.
Mr McNamara said the value of a Free Trade Agreement with China should not be underestimated.
Shan Goodwin
Journalist for The Land on the North Coast.
Journalist for The Land on the North Coast.
