On-the-Ground Updates

Dairy fat falls short as the production volume across Australia decreases

Anhydrous Milk Fat (Butter oil)

Dairy

Australia

Market & Price Trends

Alan Chau

Published Mar 6, 2022

Production volume decreased across major milk regions in Australia while domestic and export demand remained. There is a severe shortage of dairy products, especially milk fat. Prices have continued to increase monthly by 4-6% for all dairy commodities. To illustrate, the cost of WMP ranges from USD 4,500 to USD 4,800, that of SMP ranges from USD 4,300 to USD 4,600, that of butter ranges between USD 6,800 and USD 7,100.

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