Australia skim milk powder exports to remain steady
Dairy sector expected to increase cheese production
9 January 2024
1 minute read
By: Australia exports of skim milk powder are projected to hold steady at 125,000 tons in 2024, mirroring the underwhelming performance of exports in 2023, a period affected by reduced competitiveness stemming from high farmgate milk prices, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.
Farmgate milk prices are expected to gradually ease in the latter half of 2024 and may provide short-term improvements in export competitiveness. However, a forecast 3% decline in skim milk powder production to 140,000 tons will constrain exportable supplies and hence, exports.
Australia already exports a significant portion of skim milk powder production and is unable to expand exports without allocating larger portions of the milk pool to skim milk powder production. However, the dairy industry is expected to increase cheese production due to higher returns.
