Chinese cuts to import tariffs may boost UK UHT exports.

Published 12 May 15

In a bid to boost spending the Chinese State Council has agreed to reduce customs duties for imported consumer goods. This reduction is expected to include finished dairy products such as UHT milk, but not raw ingredients such as milk powder.

The UK exported around 7 million litres of UHT milk to China in 2014, almost 10 times more than the previous year. Although Chinese demand for UHT milk is relatively low in comparison to demand for milk powder, it is increasingly rapidly year on year (click here for more information). The tariff cut will reduce the price of UHT milk to Chinese consumers which could accelerate the increase in demand. In turn, this may provide opportunities for UK processors to further expand exports to China.