Milk market in Australia

Earlier Report Observations

From 2018 to 2023, the Australian milk market size in physical terms fluctuated, declining from 8.9 million tonnes to 8.1 million tonnes with a notable drop to 7.9 million tonnes in 2022. In value terms, the market consistently expanded from USD 17 billion to USD 21.6 billion, indicating strong price growth or a shift towards higher-value products.

The market experienced volume contractions in 2019 and 2021, followed by recoveries in 2020 and 2023. The sharp divergence in 2022, where volume fell 6.4% while value rose 17%, highlights the increasing revenue per unit despite lower physical consumption.

Throughout the period, the steady rise in market value against a declining volume base suggests underlying cost pressures or evolving consumer spending patterns that supported greater monetary turnover in the milk sector.

Production milk in Australia

In kind, 2018-2021, K t

Australia ranked 20th globally in milk production between 2018 and 2021.

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

In 2021, Australia produced 9,067 thousand tonnes of milk, remaining nearly unchanged from the previous year. Over the 2018-2021 period, production decreased by 2.4%, with a compound annual growth rate of 0.8%. The lowest production level was recorded in 2019 at 8,845 thousand tonnes, which saw the largest decline of 4.8%. In contrast, 2020 experienced the largest increase of 2.9%.

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

In value, 2018-2021, M $ US

In 2021, Australia's milk output was valued at 17,186 million US dollars, showing stability compared to the previous year. Between 2018 and 2021, production decreased by 2.8%, equivalent to an annualized rate of 0.9%. The lowest value was recorded in 2019 at 16,355 million US dollars, which saw the largest decline of 7.5%. Meanwhile, 2020 recorded the largest increase of 5.6%.

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

Exports milk from Australia

Exports in kind, K t

Australia's cross-border shipments of milk increased for the second consecutive year. In 2021, exports reached 658.0 thousand tonnes, representing a 37.5% increase compared to 2020. Over the 2018-2021 period, exports grew by 40.8%, with a compound annual growth rate of 12.1%. The lowest export volume was recorded in 2019 at 465.3 thousand tonnes, which saw a slight decline of 0.4%.

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

Between 2018 and 2021, China, Singapore, and Malaysia formed the core of Australia's milk exports in kind. China accounted for 39.7% of exports, Singapore for 11.2%, and Malaysia for 7.6%, together representing 58.6% of total export 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 exports increased for the second consecutive year in value terms. In 2021, exports were recorded at 1,247 million US dollars, equivalent to a 37.2% year-over-year increase. Over the 2018-2021 period, exports grew by 40.3%, with a compound annual growth rate of 11.9%. The lowest value was recorded in 2019 at 860 million US dollars, which saw a decline of 3.2%.

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

Between 2018 and 2021, China, Indonesia, and Singapore were the core markets for Australia's milk exports in value terms. China accounted for 43.5% of exports, Indonesia for 8.4%, and Singapore for 7.3%, together representing 59.2% of total export flows.

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 to Australia

Imports in kind, K t

After two years of growth, Australia's milk import volume declined. In 2021, Australia imported 68.0 thousand tonnes of milk, marking a 6.0% decrease compared to the previous year. Over the 2018-2021 period, imports increased by 34.8%, with a compound annual growth rate of 10.5%. The highest import volume was recorded in 2020 at 72.3 thousand tonnes, while the largest increase of 22.3% occurred in 2019.

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

Between 2018 and 2021, New Zealand remained the primary source for Australia's milk imports in kind, accounting for 74.2% of total import flows, with the remainder distributed across various other destinations.

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 two years of improvement, Australia's milk imports declined in value terms. In 2021, Australia imported 242 million US dollars worth of milk, indicating a modest 4.4% decrease compared to the previous year. Between 2018 and 2021, imports increased by 30.5%, equating to an annualized rate of 9.3%. The highest value was recorded in 2020 at 253 million US dollars, which also saw the largest increase of 20.4%.

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

Between 2018 and 2021, New Zealand remained the dominant source for Australia's milk imports in value terms, accounting for 71.5% of total import flows, with the rest fragmented across other markets.

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

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