Quarterly Australian Milk Production Update – Feb ’20
Executive Summary Australian milk production figures provided by Dairy Australia were recently updated with values spanning through the end of the first half of the ’19-’20 production season. Highlights from the updated report include:
- Australian milk production declined on a YOY basis throughout 18 consecutive months prior to finishing flat with the previous year volumes during Dec ’19. Declines in production are expected to continue into 2020.
- Recently experienced low pasture volumes and supplementary feed on hand contributed to the Australian dairy cow herd contracting by 3.3% throughout 2019, finishing at the lowest figure on record. USDA expects the Australian dairy cow herd will decline by an additional 1.7% 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 decline in Australian milk production.