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:
- 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.