How will the Australia-European Union Free Trade Agreement affect the Australian dairy industry?

The A‑EU FTA will make it easier for Australian dairy products to be sold into Europe, however there are also negative implications; only limited amounts of some Australian dairy products can be sold into Europe, there are strict rules on product names and increased access for European imports into Australia mean there will be stronger competition for local Aussie producers.

The Australia–European Union Free Trade Agreement (A‑EU FTA) aims to make it easier for Australia and Europe to buy and sell goods and services with each other.

It sets the rules for things like tariffs (taxes on imported goods), what products can be called, how businesses operate and share standards on things like labour and the environment. The goal is to reduce barriers and make trade more straightforward and consistent for both sides.

A key issue throughout the negotiations is something called Geographical Indications (GIs). These are protected food names linked to specific places, such as “feta,” “parmesan,” or “gruyere.” The EU wanted to restrict the use of these names to only European manufacturers.

A compromise has been reached which allows Australian producers to keep using some well‑known cheese names and “grandfather” others. This means producers already using certain names could continue, but any new products or producers in future would not be able to use those names.

Potential benefits for Australian dairy

• More reliable access to sell dairy products into Europe. 
• A chance to grow in a high-value international market, even if access is limited. 
• Some protection for existing producers already using certain cheese names.
• Can support Australia’s reputation as a producer of high-quality dairy.  

Potential risks for Australian dairy

• Access to the European market is still limited.
• More European dairy products could appear in Australian supermarkets, increasing competition for local Aussie-made dairy products.  
• European dairy producers, many of whom receive government support through subsidies, may be better placed to compete, both globally and in Australia.
• Some Australian products may need to be renamed, and future products may not be able to use familiar names, which can make them harder to recognise and sell.
• If the market for Australian dairy products is impacted or faces more competition, it negatively impacts the competitiveness of Australian dairy processors – which can flow on and directly impact dairy farmers’ income.

The impact of the agreement extends well beyond dairy. Other industries like meat, wine, horticulture and seafood are also affected, as well as services and jobs linked to trade.

What does this mean for you?

Over time, you might notice more European products, including dairy, appearing in your local supermarket. You can make a real difference by choosing Australian‑made dairy products. This helps support local dairy farmers, jobs and regional communities. Look for the Australian Grown logo and the ingredient bar chart to know you’re buying products made with Aussie milk.

Published 30 March 2026.