Australian production of skim milk powder expected to rise in 2024
Skim milk powder expected to clime 17%
30 August 2024
1 minute read
By: In 2024, Australia's production of skim milk powder (SMP) is anticipated to rise to 170,000 tons, a 17% increase from the previous year, according to a recent USDA Dairy World Markets and Trade report. This growth is largely driven by an overall boost in milk production. Additionally, the necessity to manage larger volumes of milk during peak production periods has led to an uptick in SMP production.
Dairy processors often balance SMP and butter production since they are typically produced together, and the larger availability of milk has necessitated higher output for both.
Exports of SMP also reflect this increased production. Australia's SMP exports are forecast to grow to 160,000 tons in 2024, a 20% rise from the previous year. The
primary markets for Australian SMP include China and Indonesia, although there has been a notable shift with reduced exports to China being offset by greater demand from other countries such as Vietnam, Thailand, Malaysia, and Saudi Arabia. Despite these changes, China remains a significant market, though its higher domestic milk production has lessened its dependence on imports.
