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

Primary content

Australia ranks fourth in terms of overseas exports trade, with our milk production creating a surplus destined for overseas markets.

International market overview

 

Historically Australian milk production has exceeded the volume required for domestic consumption, creating a marketable surplus destined for export markets. The share of total production exported has ranged from around 30-€“60% over the period shown below. Over recent years Australia has exported closer to 30-40% of its milk, with the combination of a declining milk production base, and a larger domestic market due to population growth resulting in less milk available for export.

Australian consumption exports
 

Although Australia accounts for less than 2% of the world's estimated milk production, it is a significant exporter of dairy products. Australia currently ranks fourth in terms of world dairy trade with a 6% share behind New Zealand, the European Union as a bloc and the United States. 


 

 

Greater China (including China, Hong Kong and Macau) is now Australia's largest market, accounting for 24% of exports by volume. Japan remains a vital trade partner for Australian exporters, as a mature, high-value market with long-established business relationships. Australian exports are overwhelmingly concentrated in Asia, which accounted for over 80% of the total dairy export value of over AUD $3 billion in 2016/17.

This concentration of exports in Asia reflects both Australia's geographic proximity to these markets and the extent to which Australia has been excluded from other major markets by direct restrictions (as in the case of the European Union) or the impact of increased export volumes from competitor countries. Asian markets have considerable potential for consumption growth as incomes rise and diets become more €˜westernised€™, and Australian dairy companies have proven track records in supplying these markets over a number of decades.

Australia's top five export markets by value in 2016/17 were Greater China, Japan, Indonesia, Singapore and Malaysia. The top five by volume differed only slightly by order: Greater China, Japan, Singapore, Indonesia and Malaysia. The fastest growing export markets by volume for Australia in the last five years have been Greater China and Malaysia.

Initiatives

Dairy Feed tools

Dairy Feed Tools is a complete feed management toolset for dairy farmers and managers. Feed planning, cost and resource management backed by Australian feed and pasture data to most accurately reflect the needs of your herd.

Hay and grain reports

The hay and grain report is commissioned by Dairy Australia to provide an independent and timely assessment of hay and grain markets in each dairying region. The report is updated 40 weeks per year.

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