Situation and 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.
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.
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.