Quarterly Australian Milk Production Update – Jul ’18
Executive Summary
Australian milk production figures provided by Dairy Australia were recently updated with values spanning through the end of the ’17-’18 production season. Highlights from the updated report include:
Low farmgate milk prices and poor weather conditions took a toll on Australian dairy producers throughout the ’16-’17 production season, contributing to production volumes declining to a 20 year low level. Improved rainfall led to better pasture growth throughout the ’17-’18 production season, however, aiding the recently experienced increases in production volumes.
Recently experienced adverse conditions contributed to the Australian dairy cow herd contracting by 3.2% throughout 2017, to 1.51 million head, finishing at the lowest figure on record. USDA expects the Australian dairy cow herd will rebound by 0.9% throughout 2018 as rising farmgate milk prices are expected to support herd rebuilding.
Australia is the fourth largest global dairy exporter, trailing only New Zealand, the EU-28 and the U.S. Of the top five dairy exporting regions accounting for over 90% of total global dairy exports, Australia accounts for 3.2% of total combined milk production and 6.6% of combined butter, cheese, nonfat dry milk (NFDM) and whole milk powder (WMP) export volumes.
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 2017, accounting for 8.7% of global cheese export volumes and 7.1% of global NFDM export volumes. From a global perspective, cheese and NFDM markets may be most affected by a continued rebound in Australian milk production.
- Australian milk production declined on a YOY basis for the first time in the past 13 months during Jun ’18, finishing down 1.4%. Despite the decline, Australian milk production finished the ’17-’18 production season up 3.1%, rebounding from the 20 year low experienced during the previous production season.
- 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. USDA projects the Australian dairy cow herd will rebound by 0.9% throughout 2018 as rising farmgate milk prices are expected to support herd rebuilding.
- Australia is the fourth largest global dairy exporter, accounting for 6.6% of combined butter, cheese, nonfat dry milk and whole milk powder exports throughout 2017. The bulk of Australian dairy exports are in the form of cheese and nonfat dry milk.
Low farmgate milk prices and poor weather conditions took a toll on Australian dairy producers throughout the ’16-’17 production season, contributing to production volumes declining to a 20 year low level. Improved rainfall led to better pasture growth throughout the ’17-’18 production season, however, aiding the recently experienced increases in production volumes.
Recently experienced adverse conditions contributed to the Australian dairy cow herd contracting by 3.2% throughout 2017, to 1.51 million head, finishing at the lowest figure on record. USDA expects the Australian dairy cow herd will rebound by 0.9% throughout 2018 as rising farmgate milk prices are expected to support herd rebuilding.
Australia is the fourth largest global dairy exporter, trailing only New Zealand, the EU-28 and the U.S. Of the top five dairy exporting regions accounting for over 90% of total global dairy exports, Australia accounts for 3.2% of total combined milk production and 6.6% of combined butter, cheese, nonfat dry milk (NFDM) and whole milk powder (WMP) export volumes.
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 2017, accounting for 8.7% of global cheese export volumes and 7.1% of global NFDM export volumes. From a global perspective, cheese and NFDM markets may be most affected by a continued rebound in Australian milk production.