Australia: Dairy and Products Annual
Australia is a comparatively small producer of milk but normally accounts for around five percent of international dairy trade. In recent years, the industry has been affected by adverse seasonal conditions and low international dairy prices. Despite investment in processing, liquid milk output is forecast to decline due to a smaller dairy herd. A more positive trend is the turnaround in seasonal conditions since mid-2016, which has contributed to significant pasture growth. Post forecasts milk production to reach a decade low of 9.3 million MT in 2017, which will limit production of cheese, butter and milk powder. Rebuilding of the dairy herd is expected to be gradual over the coming decade. Domestic consumption of milk and other dairy products is comparatively stable.
