Skip to content
800-884-8290

|

Client Login

|

Open an Account
  • About Us
  • Services
    • Futures & Options Brokerage
    • Organic Grain Swaps
    • Margin Management
    • Commodity Marketing Education
    • Consulting & Insurance
  • Research
    • Dairy
    • Livestock
    • Grain & Oilseeds
    • Ethanol & Biodiesel
  • Account
  • Quotes
  • Contact Us

Quarterly Australian Milk Production Update – Aug ’21

  • August 27, 2021August 27, 2021
  • by Belinda Przybylski

Executive Summary

Australian milk production figures provided by Dairy Australia were recently updated with values spanning through the end of the ’20-’21 production season. Highlights from the updated report include:

  • Australian milk production declined on a YOY basis for the first time in the past three months during Jun ’21, finishing down 1.1%. ’20-’21 annual production volumes increased 0.9% from the previous year, however, rebounding to a three year high level.
  • The Australian dairy cow herd is projected to decline 0.7% throughout the 2021 calendar year, reaching a record low level, as some dairy producers continue to exit the industry and high beef prices have encouraged others to shift to beef production.
  • Australia is the fourth largest global dairy exporter, accounting for 4.9% of combined butter, cheese, nonfat dry milk and whole milk powder exports throughout 2020. The bulk of Australian dairy exports are in the form of cheese and nonfat dry milk.

Additional Report Details

According to Dairy Australia, Jun ’21 Australian milk production volumes declined on a YOY basis for the first time in the past three months, finishing down 1.1%. Despite the recent decline, Australian milk production volumes have remained higher on a YOY basis over 13 of the past 18 months through Jun ’21, a result of drought-breaking rains and an excellent pasture and crop growing season in eastern Australia.

’19-’20 annual Australian milk production volumes declined by 0.2% on a YOY basis, reaching a 24 year low level, as a 4.0% YOY decline in production volumes experienced throughout the first half of the production season more than offset a 4.9% YOY rebound in production experienced throughout the final six months of the production season. ’20-’21 annual production volumes rebounded by 0.9% on a YOY basis, however, reaching a three year high level. According to the USDA, improved fodder and grain availability, coupled with strong milk prices, have helped strengthen milk production volumes throughout the most recent production season.

Recently experienced low pasture volumes and supplementary feed on hand contributed to the Australian dairy cow herd contracting by 5.6% throughout 2019. Australian dairy herd figures declined by an additional 1.4% throughout 2020, despite improvements in pasture conditions, due to biological lags in herd rebuilding. The USDA is projecting the Australian dairy cow herd will decline by an additional 0.7% throughout 2021, reaching the lowest figure on record, as some dairy producers continue to exit the industry and high beef prices have encouraged others to shift to beef production.

Australia is the fourth largest global dairy exporter, trailing only New Zealand, the EU-27+UK and the U.S. Of the top five dairy exporting regions accounting for over 90% of total global dairy exports, Australia accounts for 3.0% of total combined milk production and 4.9% of combined butter, cheese, nonfat dry milk (NFDM) and whole milk powder (WMP) export volumes throughout 2020.

The bulk of Australian dairy exports are in the form of cheese and NFDM. Australia was the fourth largest exporter of both cheese and NFDM throughout 2020, accounting for 7.2% of global cheese export volumes and 5.3% of global NFDM export volumes. From a global perspective, cheese and NFDM Junkets may be most affected by a continued rebound in Australian milk production.

Global Milk Production Update – Aug ’21
Food Service Sales Update – Sep ’21
Dairy
Ethanol
Livestock
Grain

Recent Dairy Research

  • Food Service Sales Update – Dec ’22
  • Global Dairy Trade Update 11-15-22
  • Dairy Products Production – Jul ’29
  • USDA Semi-Annual EU Dairy Production Report
  • U.S. Dairy Cold Storage Update – May ’22
Atten Babler Commodities LLC
11406 US Route 20 W
Galena, IL 61036
800-884-8290
Privacy Policy
Futures, options and swaps brokerage is provided through Atten Babler Commodities LLC. The risk of loss in trading commodity futures and options and swaps is substantial. Swaps trading should only be undertaken by investors who are Eligible Contract Participants (ECPs) within the meaning of Section 1a(18) of the Commodity Exchange Act. Before trading, you should carefully consider your financial position to determine if futures, options or swaps trading is appropriate. When trading futures, options or swaps, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. Atten Babler Commodities LLC use sources that they believe to be reliable, but they cannot warrant the accuracy of any of the data included in this site. Opinions and market data are subject to change at any time. Unless otherwise stated the information contained herein is meant for informational purposes only and is not a solicitation to buy futures or options or swaps.
© Copyright 2023 Atten Babler Commodities LLC