Milk powder

Australian manufacturers produce a range of milk powders. New technology in the production and use of powders has seen the range of specifications available from Australian manufacturers expand in line with customers’ needs.

In the years up until the peak production season of 2001/02, the most obvious trend in powder production was an increase in wholemilk powder (WMP) output - from a low of 25% in the early-to-mid 1980s to a peak of 50% share of all milk powders produced in Australia in 2001/02.  Thereafter the trend has reversed again, with skim milk powder (SMP) production regaining share to make up some 60% of total milk powder production in the last couple of seasons.  

Strong international prices saw skim milk powder production increase by 17% and wholemilk powder volumes increase by 20% in 2010/11.

Australian production of milk powders (tonnes)

*includes infant powder
Source: Dairy manufacturers

Less than 20% of Australia’s powder production is sold domestically. Retail outlets account for only a small percentage of domestic sales, with local usage being mainly as a food ingredient.

Exported milk powder is often recombined into liquid milk products, particularly in tropical climates where fresh milk supplies are not available. It is also used in bakery products (improving the volume and binding capacity of bread, and ensuring crisper pastry and biscuits), confectionery and milk chocolates, processed meats, ready-to-cook meals, baby foods, ice-cream, yogurt, health foods and reduced-fat milks. Industrial-grade powder is used for animal fodder.