Milk market in Australia and New Zealand

Earlier Report Observations

Between 2018 and 2021, the physical volume of the milk market in Australia and New Zealand fluctuated moderately, declining from 28.7 million tonnes to 27.9 million tonnes. Over the same period, the market's value increased steadily from $72.3 billion to $83.4 billion, reflecting higher milk prices or a shift toward more valuable dairy products.

In 2022, market volume contracted to 26.8 million tonnes while its value rose to $90.5 billion. Global supply chain disruptions and increased energy and fertilizer costs pressured farm production expenses. At the same time, strong export demand for New Zealand dairy products, particularly milk powder, butter, and cheese, supported market prices. The launch of plant-based milk alternatives such as Silk Nextmilk also signaled a shift in consumer preferences toward vegetarian and lactose-free options.

By 2023, market volume recovered slightly to 27.1 million tonnes, but value fell to $80.8 billion. This coincided with a quicker expansion of global milk production, which increased supply and contributed to lower prices. The continued consumer move toward plant-based and lactose-free dairy alternatives further shaped demand for traditional milk.

Production milk in Australia and New Zealand

In kind, 2018-2021, K t

Top producers of milk, 2018-2021

World map of production of milk, 2018-2021

In 2019, milk production in Australia and New Zealand reached its lowest point at 30,631 thousand tonnes, with a decline of 1.9% from the previous year. However, output rebounded in 2020, increasing by 1.1% to reach 30,953 thousand tonnes in 2021, showing overall stability compared to 2020.

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

In value, 2018-2021, M $ US

Milk production in Australia and New Zealand has grown for the third year in a row. In 2021, the value of milk output stood at 92,186 million US dollars, marking a 10.8% increase from the previous year. From 2018 to 2021, production rose by 17.4%, which translates to an average annual growth rate of 5.5%.

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

Exports milk from Australia and New Zealand

Exports in kind, K t

In 2021, milk exports from Australia and New Zealand totaled 3,050 thousand tonnes, up 11.9% from 2020. Over the 2018-2021 period, exports grew by 19.8%, with a compound annual growth rate of 6.2%. The largest decline occurred in 2020, when exports fell by 1.4%.

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

From 2018 to 2021, China, Malaysia, and Singapore were the top destinations for milk exports in kind from Australia and New Zealand. China accounted for 45.9% of exports, Malaysia for 4.4%, and Singapore for 4.3%, together making up 54.6% of total export flows.

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

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

Exports in value, M $ US

Milk exports from Australia and New Zealand have increased for the third consecutive year. In 2021, export value reached 9,084 million US dollars, a strong rise of 24.1% compared to 2020. Between 2018 and 2021, exports surged by 42%, equivalent to an annualized growth rate of 12.4%.

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

During 2018-2021, China, Malaysia, and Indonesia led as the top buyers of milk from Australia and New Zealand in value terms. China held a 45.6% share, while Malaysia and Indonesia each accounted for 4.3%, combining for 54.1% of total export value.

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

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

Imports milk to Australia and New Zealand

Imports in kind, K t

Milk imports into Australia and New Zealand showed significant volatility in recent years. In 2019, imports hit a low of 26 thousand tonnes, but then surged by 73.5% in 2020 to a peak of 44 thousand tonnes, creating a 1.7-fold difference between these years. In 2021, imports totaled 40 thousand tonnes, down 10.8% from the previous year.

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

From 2018 to 2021, milk imports in kind to Australia and New Zealand were not heavily concentrated. The Netherlands, Germany, and Austria were the leading sources, with shares of 7.6%, 5.7%, and 3.6% respectively, but together they represented only 16.9% of total import flows.

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

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

Imports in value, M $ US

After two years of growth, milk imports into Australia and New Zealand declined in 2021. Import value stood at 301 million US dollars, a decrease of 3.9% from the previous year. Over the 2018-2021 period, imports increased by 36.5%, with a compound annual growth rate of 10.9%. The highest value was recorded in 2020 at 313 million US dollars, following a 24.9% rise in 2019.

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

The partner structure for milk imports in value terms remained fragmented from 2018 to 2021. Austria, the Netherlands, and Germany were the top sources, with shares of 9.2%, 8.5%, and 6.2% respectively, but together they accounted for only 23.8% of total flows, with no single country dominating.

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

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