The USDA forecasts a 2.7% increase in Australia's cheese production to 375,000 tonnes in 2025, due to a modest increase in milk production. This would make 2025 the third-highest year for cheese production on record, with 35% of total liquid milk production being used for cheese. However, milk production is expected to decrease in 2024 as processors shift production towards SMP and butter. The shift in focus has led to an increase in production of semi-hard and specialty cheeses, while cheddar production has decreased. The USDA also expects cheese production to reach 365,000 tonnes in 2024, but data shows a over 7% decrease compared to the same period in 2023.