China is quickly becoming the export destination of choice for south west dairy firms hungry for growth. Not only is the country one of the world’s most dominant economic powers but demand for dairy among its increasing middle-class population is growing at an unprecedented rate. In fact, it’s predicted that imports of dairy products will exceed 19million tonnes a year by 2026, from around 14million tonnes in 2017.

Chinese consumers have only been eating dairy for the past 20 years and its popularity has ballooned even more recently China is now one of the world’s top importers of butter and cheese. Trade tariffs on a range of cheeses were recently cut from 12-15% to 8% and in October 2017, the Chinese authorities lifted an import ban on several types of soft and mould-ripened cheeses, such as Stilton and Roquefort.

Paul Shand, south west regional director for the Department for International Trade (DIT) says this is welcome news to dairy farmers in the south west who make up around a third of all England’s dairy producers. The region is also home to nearly half of England’s organic farm land.

Mr Shand said: "As diversification becomes a key source of income for rural businesses in the UK, south west dairy farmers are well placed to tap in to the growing opportunities in China. Figures from the Farm Business Survey indicate that 64% of England’s farming businesses have diversified their operations, whether it’s making cheese from their dairy herd’s milk or clothes from their sheep’s wool.

"More than £2.4m worth of the south west’s dairy produce was exported to China in 2016. However, we know that some businesses still believe that doing business with this lucrative market can pose more challenges than others."

Specifically, the country is not one single market - there are different regional economies and economic hubs, which need to be taken into account and researched thoroughly. And, in China, personal relationships and building trust are essential.

Mr Shand recommended that businesses trading with any overseas market should run a credit check before agreeing to an international contract and take out appropriate insurance. Measures should also be put in place to protect intellectual property rights.

To help companies navigate these challenges of selling abroad, Defra and the Department for International Trade (DIT) offer support for food and drink producers looking to get their products to China and other key markets. The ‘Food is GREAT’ campaign aims to increase UK exports to China by £80 million.

DIT has 25 south west-based advisers on hand to help companies trade overseas that can be contacted on 01275 370 944, at DITsw@mobile.trade.gov.uk or at great.gov.uk which gives UK companies access to millions of pounds’ worth of potential overseas business, helping them to start or export further.