Milk and cream market in Australia

Earlier Report Observations

The Australian market for not concentrated, not sweetened milk and cream experienced a sustained contraction between 2018 and 2023, with total market volume falling from 11 636 thousand tonnes to 9 896 thousand tonnes. This represented a decline of approximately 15% over the six-year period, indicating a significant shift in domestic consumption or supply dynamics.

The downturn began in 2019 with a sharp drop of nearly 7%, followed by a modest recovery of 2% in 2020. However, from 2021 onward, the market resumed its downward trajectory, shrinking by almost 7% in 2022 before stabilizing in 2023 with a marginal decrease of less than 1%. Production mirrored this trend, declining from 11 851 thousand tonnes to 10 092 thousand tonnes over the same span.

Throughout the period, exports fluctuated while imports remained minimal, suggesting that internal market forces were the primary driver of the observed volume changes. The consistent reduction in both market size and output points to broader structural adjustments within Australia's dairy sector.

Production milk and cream in Australia

In kind, 2018-2021, K t

Between 2018 and 2021, Australia ranked as the 16th largest producer of milk and cream globally.

Top producers of milk and cream, 2018-2021

World map of production of milk and cream, 2018-2021

In 2021, Australia produced 11 076 K t of milk and cream, marking a 2.4% decrease from the previous year. From 2018 to 2021, production fell by 6.5%, averaging an annual decline of 2.2%. The most significant drop occurred in 2019, with a 6.3% reduction, while the largest increase was in 2020, at 2.2%.

Annual dynamics of production in Australia in kind, 2018-2021, K t

In value, 2018-2021, M $ US

In 2021, the value of milk and cream output in Australia was 7 520 M $ US, showing a sharp decline of 26.6% compared to 2020. Over the 2018-2021 period, production value decreased by 33.1%, with a compound annual growth rate (CAGR) of -12.6%. The largest increase was recorded in 2020, at 2.7%.

Annual dynamics of production in Australia in value, 2018-2021, M $ US

Exports milk and cream from Australia

Exports in kind, K t

Milk and cream exports from Australia grew for the third year in a row. In 2021, exports reached 396.9 K t, a sharp rise of 51.2% from the previous year. From 2018 to 2021, exports increased by 80%, with a CAGR of 21.6%.

Annual dynamics of product's exports from Australia in kind, 2018-2021, K t

From 2018 to 2021, China, Singapore, and Malaysia were the key partners for Australia's milk and cream exports in volume terms. China accounted for 43.7% of exports, Singapore for 16.5%, and Malaysia for 8.2%, together making up 68.5% of total flows.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Australia in kind, 2018-2021

Exports in value, M $ US

Australia's milk and cream export value rose for the third consecutive year. In 2021, exports totaled 269.5 M $ US, up 13.8% from 2020. Between 2018 and 2021, export value increased by 28.8%, averaging an annual growth rate of 8.8%.

Annual dynamics of product's exports from Australia in value, 2018-2021, M $ US

During 2018-2021, China, Singapore, and Hong Kong were the three main markets for Australia's milk and cream exports in value terms, collectively absorbing 67.3% of total exports.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Australia in value, 2018-2021

Imports milk and cream to Australia

Imports in kind, K t

Milk and cream imports into Australia declined for the second consecutive year. In 2021, imports were approximately 4.9 K t, remaining stable compared to 2020. From 2018 to 2021, imports decreased by 13.6%, with an annualized rate of -4.8%. The highest volume was in 2019 at 5.7 K t, which saw a 1.1% increase. The largest decline occurred in 2020, with a 14.1% drop.

Annual dynamics of product's imports to Australia in kind, 2018-2021, K t

From 2018 to 2021, New Zealand dominated Australia's milk and cream imports in volume terms, holding a 92.2% share of total flows.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Australia in kind, 2018-2021

Imports in value, M $ US

After a two-year decline, the value of milk and cream imports into Australia increased. In 2021, imports were valued at 11.1 M $ US, showing a robust gain of 22.5% over the past year. Between 2018 and 2021, import value decreased by 11%, with an annualized rate of -3.8%. The lowest value was in 2020 at 8.7 M $ US, which experienced a 21.9% decline.

Annual dynamics of product's imports to Australia in value, 2018-2021, M $ US

Over 2018-2021, New Zealand was the dominant market for Australia's milk and cream imports in value terms, accounting for 88.8% of total flows, while other countries made up the remainder.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Australia in value, 2018-2021