Australian milk production forecast slightly higher


Australian milk production forecast slightly higher

The U.S. Foreign Ag Service says Australian milk production is expected to increase moderately in 2022 after falling throughout the pandemic partly because of improving pasture conditions.

In its annual report, the FAS office says border closures during the pandemic negatively impacted milk production this past year as labor shortages caused farms to transition more to beef cattle production.  Wet conditions during Australia’s winter also held back production.   Milk production is also expected to be limited into 2022 because of labor issues while demand from China continues to drive strong export growth.

Over the past 20 years, the FAS says Australia’s dairy herd has declined by 40 percent and farm numbers have fallen 60 percent while milk production has only declined slightly more than 20 percent after the industry was deregulated by the government.  At the same time, herd sizes have doubled and milk per cow has increased by 30 percent.

Australian dairy exports are forecast to increase nine percent in 2022.  Exports to China during 2021 grew 75 percent.