China has approved imports of UK-made dairy products such as cream and yoghurt made using milk sourced from other countries, Liam Fox has announced.

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The International Trade Secretary said the deal is worth £240 million over five years for the UK dairy industry.

The agreement is said to increase flexibility in the supply chain, meaning producers in Northern Ireland, for example, can export products made using milk from across the border.

Dr Fox announced the deal whilst in China, where he is attending a meeting of the UK-China Joint Economic and Trade Commission (JETCO) in Beijing.

“This is my fourth visit to China this year and I’m delighted to see the completion of this deal, bringing significant benefits to dairy producers across the UK at a time when British food and drink exports are at a record high,” he said.

Environment Secretary Michael Gove added:  “Our world-class dairy producers already export £1.7 billion worth of produce per year.

“This milestone will help to unlock the UK food and drink industry’s full potential forging new trading relationships around the globe.

“This step shows we can be a truly outward looking Britain outside the European Union.”