Australia: Dairy is getting lucky, but it's not flowing through to more milk yet

Published 2020년 12월 14일

Tridge summary

Australia's dairy industry is experiencing positive trends, including favorable conditions, lower input costs, and higher farmgate prices, leading to a projected increase in national milk production in the 2020/21 season. However, growth is constrained by factors such as labor shortages, debt reduction, and uncertainties related to the pandemic and China. Despite these challenges, the industry is expected to have one of its best seasons in recent years, with sales of milk and butter experiencing significant growth. The industry is also dealing with challenges like labor shortages and potential shifts in consumer preferences towards larger pack sizes. There is also interest in expanding into the Indonesian market, which has a large population and growing middle class, as it may offer opportunities for Australian dairy exports, especially in products like skim milk powder and cheese.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

FROM ripper seasonal conditions in the south to lower input costs, higher farmgate prices and buoyant consumer demand, the stars are finally aligning for Australia's beleaguered dairy industry. The turning tide is yet to deliver significant lifts in milk production, with constraints such as labour, debt reduction and uneasiness about pandemic uncertainties and relations with China holding back growth. National milk production will likely lift in the 2020/21 season, for the first time in three years, but at the moment it is tracking towards the bottom end of Dairy Australia's forecast range of 1 to 3 per cent growth. December's Situation and Outlook from the big dairy services body shows production growth has been greatest in South Australia, western Victoria and Tasmania but is still in the negative range for most other regions. Still, industry analysts are saying this season will be one of the best for the dairy sector in many years and while good rainfall is key to that, ...

Source: Farm Online National