There’s always a trade-off

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By Dwain Duxson.

There’s always a trade-off - Since 2019, China has increased their milk supply by 10 billion litres. Yes, 10 billion. Australia produced 8.3 billion litres in the last financial year, so with China's increase, that is over 120 per cent of our overall production.

So they are fast becoming self-sufficient in Milk after long being a major importer of Australian Milk.

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This got me thinking about how many Dairy Heifers we have exported to China over the years. It has been a brilliant and rather lucrative market for the industry. But the question I ask is, have we fueled the beast that will come back to bite us one day? Maybe. But if we didn't sell them those Heifers, somebody else probably would have.

It just goes to show in international trade, there is always a trade-off. You supply a country with y, and they will produce more x. Could we be contributing to a market that will eventually see us miss out on the spoils? Will we start seeing it have an effect on our Dairy industry? Can you think of any other trade-off situations? Reply to dwaind@farmtender.com.au

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