Milk production in Australia grew by 6.9 percent during the fiscal year that runs from July 2000 through June 2001.

According to the Australian Dairy Corporation, the increase in milk production helped push up total output of dairy products including an increase in cheese production of 5.9 percent. Despite the good news on the production side, overall cheese exports were down a bit, but the report from the Australian Dairy Corporation says that decline was outweighed by an increase in exports of powdered milks.

About 50 percent of the milk produced in Australia is used for export and despite only producing 2 percent of the world milk supply, Australia accounts for 15 percent of the world trade in dairy products. Primary markets include: Japan, the Philippines, Malaysia, Thailand, Taiwan, Singapore and Indonesia. In addition, the Middle East is an important market for butter and cheese products.

The Australian Bureau of Agricultural and Resource predicts that world prices for dairy products will remain weak during the next fiscal year. Increased global supplies, high inventory levels and relatively weak consumer demand will continue to hamper the market. The chart below shows a comparison of ADC’s dairy exports for the past two fiscal years.
Dow Jones Business Wire