Dairy Australia - Dairy information for Australian Dairy Farmers and the industry

Dairy Australia Situation and Outlook March 2020

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 reveals national milk production in the current season has steadied in recent months, with rainfall in many regions offsetting the impact of dry conditions and helping to check higher feed costs.

After a difficult start to the 2019/20 season for many farmers, falling milk production has moderated to a decline of just 3.7% to date. Production volumes in both December and January exceeded expectations, with December seeing the first year on year increase in milk production in 18 months.

Supply and demand of dairy products is yet to be materially impacted by the developing Coronavirus (Covid-19) outbreak, although most dairy commodities prices have trended lower in recent weeks.

Face-to-face trade and business development activities have been widely disrupted, as has shipping and distribution, while the effect on underlying demand is uncertain.

Listen to Dairy Australia's Trade and Industry Strategy group manager Charlie McElhone discuss key report insights and Covid-19 with Industry Insights and Analysis manager, John Droppert.

Keep reading

Input costs

Grain and hay prices have eased in recent weeks but remain higher than the same time last year for many regions.

Grain icon
-23% to +7% range in feed wheat prices compared to last year
Hay icon
-13% to +94% range in hay pricing compared to last year

Milk production

Australia’s year-to-date milk production for the season to January remains below the same period last season, but has stabilised in recent months.

-3.7%
YTD July to January milk production change
8.3b – 8.5b
litres predicted in 2019-20

Australian supermarket sales

Australian demand for dairy remains robust, with retail sales growth reported for all dairy categories. Particularly strong growth in yoghurt sales, as consumers increasingly recognise its health and convenience attributes.

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 29/12/2019 & 26/01/2020, for the total Australian market, according to the Nielsen standard product hierarchy. Copyright © 2020, The Nielsen Company.
Yoghurt icon
4.7% volume growth for yoghurt
Yoghurt icon
6.1% value growth for yoghurt

Previous Situation and Outlook Reports

If you are interested in viewing previously published reports on the dairy industry's situation and outlook, please visit our archive.

Read previous reports
Situation and Outlook December 2019 report cover