Quarterly Australian Milk Production Update – Sep ’20
Executive Summary Australian milk production figures provided by Dairy Australia were recently updated with values spanning through the end of the ’19-’20 production season. Highlights from the updated report include:
- Australian milk production increased on a YOY basis for the seventh consecutive month during Jun ’20, finishing up 4.1%. ’19-’20 annual production volumes declined by 0.4% on a YOY basis, however, despite the recently experienced increases in production.
- Recently experienced low pasture volumes and supplementary feed on hand contributed to the Australian dairy cow herd contracting by 5.6% throughout 2019, finishing at the lowest figure on record. USDA expects the Australian dairy cow herd will decline by an additional 0.3% throughout 2020.
- Australia is the fourth largest global dairy exporter, accounting for 5.2% of combined butter, cheese, nonfat dry milk and whole milk powder exports throughout 2019. The bulk of Australian dairy exports are in the form of cheese and nonfat dry milk. From a global perspective, cheese and nonfat dry milk markets may be most affected by a continued rebound in Australian milk production.