Report

Situation & Outlook Report



Dairy Australia is the Australian dairy industry’s go-to source for the latest international and domestic market trends, statistics and facts, providing expert analysis and unbiased insights.

The latest Situation and Outlook report describes how national milk production is set to increase this season, as favourable weather, lower input costs and a relatively firm farmgate milk prices support some of the best dairy farming conditions of recent years.

This will be the first annual increase in national milk production in three years – with Tasmania, Gippsland and South Australia leading the charge. Increased milk supply in most regions is also supporting ‘cautious optimism’ for improved farm profitability.

The report also highlights significant changes in consumer purchasing habits resulting from COVID-19. While foodservice and route channel sales have declined due to reduced hospitality sector activity and travel, retail dairy sales have been fuelled by increased levels of home cooking and baking.

  • Situation and Outlook Report October 2020

    (05 October 2020)
    PDF, 1.7 MB

Listen to Dairy Australia’s John Droppert discuss insights from the October Situation and Outlook report with Rabobank senior analyst Michael Harvey.

Podcast

Dairy Australia Podcast 35 - Situation and Outlook October 2020

Listen to Dairy Australia’s John Droppert discuss insights from the October Situation and Outlook report with Rabobank analyst Michael Harvey.
Published:
Industry data
Manufacturing and Trade
Situation and Outlook
Situation and Outlook Report October 2020

The Situation and Outlook report also features Dairy Australia’s Trade Agreement Comparison Guide 2020 - a new tool for exporters. The guide provides ‘at a glance’ comparison of tariffs and quotas under active trade agreements for Australian dairy exporters compared to our main competitors.

Calculator and Tool

Trade Agreement Comparison Guide 2020

This guide provides information on current trade agreements for the top 10 export markets for the Australian dairy industry
Published:
Export
Trade Agreement Comparison Guide 2020

Milk production

Favourable weather, easing input costs and relatively strong competition for milk seems to drive a level of cautious optimism in most regions with positive flow-on impact on milk production. In July milk production grew 2.9% compared to last year and preliminary figures suggest this growth continued in August.

Australian retail market

With people staying at home more than ever before, retail demand for dairy products used in cooking and baking has grown, whilst demand remains subdued through non-grocery channels. Retail sales of butter, everyday style cheese and yoghurt continue to increase, as sales of single-serve products decrease.

Disclaimer: Source - Nielsen Homescan based on a continuous panel of 10,000 households; excludes non-private dwellings & businesses, non-permanently occupied households & out-of-home/impulse purchasing. DAIRY AUSTRALIA calculation based in part on data reported by Nielsen through its Homescan Service for the dairy category for the 52-week period ending 09/08/2020, for the total Australian market, according to the Nielsen standard product hierarchy. Copyright (c) 2020, The Nielsen Company.

Global markets

Global milk supply continues to grow, as incentives to curb production (due to COVID-19) in the US and EU have been phased out, and the southern hemisphere enters its peak production months. Whilst global commodity prices have been cushioned from severe impact so far, increased supply is likely to weigh on the market balance.

Previous Reports

Access previous Situation and Outlook reports from our Resource Hub.


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