Paterson to lead dairy delegation to China

Environment Secretary Owen Paterson will be due in China as he attempts to boost the UK dairy industry in the region.

The Environment Secretary will travel with a large trade delegation as he attempts to fill a £1 billion hole in the British economy.

China, whose food business is worth £38bn a year, is consuming significantly more Western-style milk and other dairy products.

Exports in the food and drink sector from the United Kingdom to China totalled £174m in 2011.

"From chocolate to cheddar, China’s population is getting a taste for dairy, and Britain’s world-class food industry can supply that demand" Paterson said.

The UK currently imports £1.2 billion more dairy produce than it exports, meaning there is huge potential for growth at home and abroad.

Paterson is expected to meet dairy companies, trade associations, industry experts and retailers in Shanghai to begin developing trade in the world's second biggest economy.

The trade delegation will also be promoting tea, desserts, beer, meat and confectionery produced by British companies.

A record number of small and medium-sized British businesses will be in Shanghai to sell their produce to 30,000 importers at the giant Food and Hotel China exhibition.

"I’ll be helping British businesses grab the opportunity with both hands, helping our country compete and thrive in the global race."

China’s dairy consumption is increasing because of changing lifestyles and diet, and there is a window of opportunity while domestic production cannot meet this demand.

"The dairy industry is a new but growing market," said Elisa Fairbanks of the Food and Drink Exporters Association.

"I have been stunned by how much dairy there is in Shanghai compared with 12 months ago - there are coffee houses, ice cream parlours, frozen yoghurt bars", she said, noting that the market in UHT milk drinks is also growing."

The UK has room to significantly expand production while other EU countries are restricted by milk quotas until 2015.

As the first step towards developing more trade with China, Defra will share the insight into the Chinese market with other businesses in a dairy export summit in the New Year.