Higher milk prices, but lower supply in Australia

The milk supply in Australia last autumn came to just over 593.000 tons, a decrease of 8,8% compared to the same month last year. In Australia it is now winter, milk production is traditionally always lower than in the spring months from September to November. The trend thus continued during the past milking season, because every month of the year showed a decrease compared to the production of the previous year. The supply figures for June have not yet been announced by the Australian dairy organisation. 

Up to and including May, almost 7,7 million tonnes of milk have been processed in the factories in Australia, 3,5% less than in the first 11 months of the 2020/21 milking year. It is expected that the total milk production last season will amount to approximately 8,3 million tons, also a decrease of 3,5% compared to the previous season. Relatively speaking, Western Australia and the island of Tasmania saw the strongest decline in milk production at 6,1 and 7,5% respectively over the first 11 months of the season. In Victoria, by far the largest dairy state in Australia, milk production is falling by approximately 3,7%.

Although milk prices have risen in recent times, this has not yet translated into a turnaround in milk production. Many dairy farms are faced with rising costs for fuel and fertilizer, among other things. The general economic developments also mean that dairy farmers are cautious with investments. It goes without saying that dairy farms also want to build up financial buffers first, after having used up the reserves recently.