Chinese demand for imported food shifts to Australia and New Zealand

With over a decade experience helping Australian suppliers get their produce into China, Peloris managing director Peter Verry speaks on the state of play regarding Chinese dairy demand.

Alex Wang, Luke Hartsuyker and Peter Verry from Peloris Global Sourcing.

For more than a decade, export logistics company Peloris Global Sourcing has been helping bring Australian dairy products into China - and now, it’s shifting focus to connecting Australian producers directly with their Chinese customers.

Peloris managing director Peter Verry said the current distribution model for food exporters into China - where products could go through two or three traders before reaching the customer - was one of the biggest barriers to trade, which they were aiming to change.

“It’s frustrating for producers because they never engage with their end customers, and customers are just dealing with a trader,” Mr Verry said.

To that end, Peloris is working to secure direct customer-to-supplier relationships, and last week hosted representatives from two Chinese food companies, introducing them to three factories in Victoria.

“By connecting the producer directly with the customer, we can establish long-term partnerships that also help with innovation and research and development,” Mr Verry said.

Peloris began its venture into China with a first shipment of 4000 litres of milk in 2014, which boomed to 30,000 litres a week in 2024.

Mr Verry said while demand for imported products in China had “bounced back”, it had not yet returned to pre-pandemic levels, due partly to increased domestic production and an increase in the quality of local food. But there may be a growing opportunity for Australian suppliers.

“We’ve seen a shift in China’s focus away from European sourcing of food towards Australia and New Zealand products,” Mr Verry said.

“The supply chain has considerably lengthened in Europe. You’ve got issues with the Red Sea, and various conflicts that are going on, delays in shipping etc. There’s also the tariffs issue coming out of the US.

“We can get produce to China in two to three weeks, whereas out of Europe it can be up to six to eight weeks.”

Peloris is now looking to expand its presence in the Southeast Asian market, recently starting work in Vietnam.

“It’s early days … (but) demand is growing in parallel with the rise in middle class incomes. It’s always the way for imported foods, right? The vast majority of people aren’t going to buy an imported product, but as the income rises, the demand will rise,” Mr Verry said.

But for Australian dairy producers considering moving their product into southeast Asia or China, “there’s no guarantee”.

“That’s the first thing someone has to realise. Just because you’re making a product here doesn’t mean it will sell well,” Mr Verry said.

“They need to really make sure that there is demand for the product, do some market research and check out similar products in the same category and the price points.”

For Mr Verry, the satisfaction in breaking down barriers to access new markets is something he has taken great pride in during his time at Peloris.

“I’m personally proud of the fact that we were responsible for convincing the China customer bureau to formally implement a 24-hour fast lane clearance. Previously it was 5-7 days. They’ve done that for other accredited importers, not just us, but we broke that barrier,” he said.

“We got the first milk into China, and it’s the thrill of achieving something others may not be able to. It doesn’t always pay, sometimes it costs us, but it’s a really good feeling to do that.”