Australia needs to grasp opportunities to expand into the Chinese food and milk markets as quickly as possible, Reserve Bank governor Glenn Stevens says.
In his semi-annual testimony to parliament on Wednesday, Mr Stevens said there were big opportunities in China for Australian producers.
Answering a question from a Queensland high school student about Australian milk exports to China, Mr Stevens said a lower Australian dollar would help producers reap more profits from exports.
But there were also other factors that would make Australia more competitive, he said.
"I think Australian producers have very large opportunities into the Chinese market over the years ahead not just in milk but many kinds of food produce," Mr Stevens said.
"That's an opportunity we should be grasping as quickly as we can.
"The exchange rate does matter, but it's not the only thing that matters.
"To be competitive, we need cost effective production, cost effective and efficient transport, we need reliability of supply and I think in a modern world, reputation for safety of the product.
"Milk in China has been an issue - not our milk, but other milk.
"Having a reputation for safety and reliability and quality is also very important."
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