Exports of dairy products fall a lot

December 3rd, 2008

Exports of dairy goods have stopped its pace during what usually is the best time of the year for the industry, which due to the tainted-milk food scandal.

Dairy scandal has created distrust in Chinese dairy products and other China-make food products, which decreased the export of Chinese food products seriously. According to latest General Administration of Customs (GAC) figures, only 1,036 tons of dairy products were exported in October, down 92% year-on-year. From January to September, the monthly average export of dairy products was 12,000 tons.

But the US-China Strategic Economic Dialogue (SED) on economic, trade and food safety issues, which will start on Thursday, could be the light in Chinese exporters’ darkness.

Official sources have said it is “highly possible” that the two countries would reach an agreement to ease the restrictions on Chinese food exports to the US. Sources in the China General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) also said the dialogue could prepare for the US Food and Drug Administration (FDA) to accept tests carried out by AQSIQ as independent, third-party certification. So the struggling Chinese food products’ exporters put their hopes on the SED.

Last month, an import alert was made by FDA on Chinese dairy products, which made it impossible for Chinese products go into US. Because of the industrial chemical melamine, the range of milk products is wide in China.

The FDA has urged exporters and importers to certify their products strictly if they want to sell them in the US.

US Treasury Secretary Henry Paulson-led delegation’s visit to Beijing for the two-day SED will be very important because of these developments.

Exports of dairy product in October in Guangzhou were only 35 tons, down 94% year-on-year, according to local Customs figures. Guangzhou is one of the cities which were hurt worst by the scandal.

 

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