Updated 7.21pm: Dairy exporters concerned by the threat of Australia, are being told there's nothing to worry about.

There have been concerns that Canberra's new free trade agreement with China gives Australian producers better access to China, than our seven-year-old agreement.

But Rabobank Australia analyst Michael Harvey says there's no way Australia could ever compete with our export volumes.

"It's good for Australia to get into Asia and particularly China, but we're never going to be able to produce the volume to push New Zealand out of the market."

Michael Harvey says Australia produces very little milk for export, compared with New Zealand.

Meanwhile babies in China are thirsty for Kiwi formula - but our dairy producers are being warned not to get caught up in the hype.

Interest is high among New Zealand producers, to partner with Chinese firms in the export of infant formula products.

But Rabobank Australia analyst Michael Harvey says China's interest in New Zealand milk is likely to lose its intensity.

"The growth rates aren't what they were five years ago, and that was always going to be the case."