Quarterly Australian Milk Production Update – Aug ’19
Executive Summary Australian milk production figures provided by Dairy Australia were recently updated with values spanning through the end of the ’18-’19 production season. Highlights from the updated report include:
- Australian milk production declined on a YOY basis for the 13th consecutive month during Jun ’19, finishing down 7.4% to a ten year seasonal low level. Hot and dry weather conditions experienced across Australia have contributed to the recently experienced declines in production volumes. ’18-’19 annual Australian milk production volumes declined 5.7% YOY, reaching a 24 year low level.
- Low farmgate milk prices and poor weather conditions contributed to the Australian dairy cow declining 3.2% to the lowest figure on record during 2017. The Australian dairy cow herd rebounded slightly throughout 2018 as rising farmgate milk prices supported herd rebuilding, however USDA expects the Australian dairy cow herd to decline 50,000 head, or 3.3%, throughout 2019, finishing at the lowest figure on record.
- Australia is the fourth largest global dairy exporter, accounting for 6.5% of combined butter, cheese, nonfat dry milk and whole milk powder exports throughout 2018. The bulk of Australian dairy exports are in the form of cheese and nonfat dry milk. A growing population, coupled with strong demand for milk and dairy products, is expected to result in lower Australian dairy exports over the next year if milk production volumes remain lower YOY. From a global perspective, cheese and nonfat dry milk markets may be most affected by a continued decline in Australian milk production.