Van Dairy, owned by China's Moon Lake Investments, will fly the milk into the wealthy port city of Ningbo, situated at the mouth of the Yangtze River.

Moon Lake has existing distribution relationships in the city of nearly 8 million people and believes it is less saturated with imported products than nearby Shanghai.

As the owner of Kresta Blinds, Moon Lake will then use the return Qantas flight to send curtains, awnings and other window shades manufactured in China to Australia.

The shipment of agricultural products to China and manufactured goods coming the other way is an increasing feature of Australia's trade relationship with the mainland.

China the leading destination

China is the top destination for Australia food, fisheries and forestry exports, which, according to government figures, topped $11 billion in 2015.

Within this, dairy exports to Greater China were worth $424 million or 15 per cent of all exports last financial year.

Moon Lake managing director Sean Shwe said the newly established flight also provided an opportunity for Tasmanian producers of seafood, horticulture and other perishable items to send their goods to China.


"It will be a game changer for Tasmania, and we are proud to be leading the charge," he said in emailed comments.

The volume of fresh milk Moon Lake plans on sending to China is significantly more than that of Norco and A2, which are flying product into the mainland.

Moon Lake paid $280 million for Van Diemen's Land Co in March, giving it access to 25 dairy farms in northern Tasmania.

It will market its newly launched fresh milk range under the Van Milk label and tell Chinese consumers that northern Tasmania has "the world's cleanest air".

While airlines such as Qantas have benefited from the Chinese tourist boom into Australia, demand for freight services is also growing strongly.

Qantas runs five dedicated freight services into Greater China each week.

"We often talk about China being a key market from a passenger perspective ... but the freight market is significant as well" said Alison Webster, the head of Qantas Freight.

Cathay Pacific launched a weekly freight service last month sending beef, mangos and other agricultural products out of Toowoomba's recently completed Wellcamp Airport to Hong Kong.