News

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

Indonesia
Published Dec 15, 2020

Tridge summary

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.

Original content

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, elevated retail sales is contributing in no small measure. The report describes how the easing of COVID-19 restrictions has "unleashed months of pent-up consumer demand" and seen food service sales rebound since spring. Sales of milk and butter grew 4.6 and 8.7 per cent respectively in the year-to-November. Consumers have, however, shifted to buying larger pack sizes, usually priced at a discount. Australian ...
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