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Inside Business Dairy

Australian dairy farmers deliver more for less

25 August 2021 - Stef Wissink

Australian dairy processors have been able to significantly increase exports in volume terms over the past year. The products sold, on the other hand, brought in less money.

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The volumes for the period July 2020 to June 2021 were 9,7% higher than the same period a year earlier. In particular, more milk and milk powder were exported. Exports of cheddar and dairy products in processed products declined somewhat. Meanwhile, the milk supply over the same period is slightly higher than a year earlier. Milk production appears to be picking up an upward trend again after a number of difficult years of decline.

Milk and powders pull cart
Volumes increased mainly because significantly more milk and milk powder was exported. Milk exports increased by 14,8% to a volume of 280.224 tons and skimmed and whole milk powder exports increased by 14,7% and 18,6% to 123.415 tons and 55.214 tons, respectively. Butter was also sold more often. The exported volume amounted to 18.095 tons, more than doubling compared to a year earlier.

A decrease was noted in the export of cheddar and so-called mixtures (processed dairy in other products). These fell by 14,5% and 24,8% to 30.545 and 54.888 tonnes respectively.

Although volumes grew, the export value of the products in the period July 2020 to June 2021 was slightly smaller than a year earlier. This fell by 2,4% to a total of 3,2 billion Australian dollars. Cheddars, whey products and whole milk powder in particular yielded slightly less. The decline in these year-on-year figures may be explained by the corona pandemic. As a result, dairy products generated considerably less money for a while last year. The strong recovery in the past six months has not yet been able to fill that gap.

The overview of the volumes executed:

metric tons July to June this year July to June last year %change
Butter 8.229 18.095 119,9%
Butter oil 3.066 5.814 89,6%
cheddar 35.703 30.545 -14,5%
Other cheese 121.903 124.690 2,3%
Milk 244.107 280.224 14,8%
Skimmed milk powder 107.642 123.415 14,7%
Full milkpowder 46.556 55.214 18,6%
Whey powder 34.247 35.920 4,9%
Mixed products 73.032 54.888 -24,8%
Other 83.145 101.957 22,6%

Total

757.631

830.763

9,7%

The overview below shows the value of the exported products:

In thousands of Australian Dollars July to June this year July to June year Value per tonne %change
Butter 68.375 112.594 6.222 119,9%
Butter oil 21.678 34.831 5.990 89,6%
cheddar 227.928 180.877 5.921 -14,5%
Other cheese 755.346 708.034 5.678 2,3%
Milk 318.232 370.011 1.320 14,8%
Skimmed milk powder 462.749 511.176 4.141 14,7%
Full milkpowder 482.797 468.519 8.485 18,6%
Whey powder 188.721 125.209 3.485 4,9%
Mixed products 550.204 398.568 7.261 -24,8%
Other 302.204 386.568 3.791 22,6%

Total

3.378.121

3.296.123

5.222

-2.7%

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