Milk powder with fat content of >1.5% market in Australia

Earlier Report Observations

The Australian milk powder market volume stood at 55.9 thousand tons in 2018, supported by the industry's strong export orientation and the product's inherent advantages like long shelf life. A decline to 43.2 thousand tons in 2019 was largely due to weather-related constraints on milk production, which limited domestic output. The market recovered to 50.6 thousand tons in 2020 as global supply chain disruptions and altered trade flows affected import and export balances.

From 2021, high global prices for whole milk powder led manufacturers to prioritize production for export, a strategy bolstered by a weaker Australian dollar improving competitiveness. This export focus, combined with intense competition for milk supply and robust international markets, contributed to a sharp contraction in domestic market volume to 24.9 thousand tons in 2022, a period marked by rising retail and farmgate prices.

In 2023, the market rebounded to 38.8 thousand tons, driven by a surge in imports and a reduction in exports. Underlying trends included ongoing shifts in consumer preferences towards health-conscious products and industry efforts to enhance transparency through initiatives like the Australian Dairy Plan.

Production milk powder with fat content of >1.5% in Australia

In kind, 2018-2021, t

Between 2018 and 2021, Australia ranked as the 14th largest global producer of milk powder with a fat content exceeding 1.5%.

Top producers of milk powder with fat content of >1.5%, 2018-2021

World map of production of milk powder with fat content of >1.5%, 2018-2021

Following a two-year decline, Australia's production of milk powder with over 1.5% fat content rebounded. In 2021, output reached 52 458 tonnes, marking a 17.5% year-on-year increase. However, over the 2018-2021 period, production fell by 36.4%, with a compound annual growth rate of -14.0%. The lowest production level was recorded in 2020 at 44 636 tonnes, while the sharpest drop occurred in 2019, with a 42.4% decrease.

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

In value, 2018-2021, M $ US

After two consecutive years of decline, the value of Australia's milk powder production with over 1.5% fat content rose. In 2021, production was valued at 283.9 million US dollars, representing a 25.9% year-on-year gain. From 2018 to 2021, however, the overall value decreased by 26.8%, translating to an annualized decline of 9.9%. The lowest value was observed in 2020 at 225.5 million US dollars, with the most significant fall occurring in 2019 at 37.2%.

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

Exports milk powder with fat content of >1.5% from Australia

Exports in kind, t

Following a two-year downturn, Australia's exports of milk powder with over 1.5% fat content increased. In 2021, exports totaled 51 514 tonnes, showing a 39.7% rise compared to 2020. Over the 2018-2021 span, exports decreased by 6.2%, equating to an annualized decline of 2.1%. The lowest export volume was recorded in 2020 at 36 882 tonnes, while the largest drop happened in 2019, with a 24.0% decrease.

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

From 2018 to 2021, China, Thailand, and Singapore were the primary destinations for Australia's milk powder exports with over 1.5% fat content, accounting for 68.0% of total export volume. China led with 45.9%, followed by Thailand at 14.7%, and Singapore at 7.5%.

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

After a two-year decline, the value of Australia's milk powder exports with over 1.5% fat content surged. In 2021, exports reached 278.7 million US dollars, reflecting a sharp 49.6% year-on-year increase. Between 2018 and 2021, export value grew by 7.9%, with an annualized rate of 2.6%. The lowest value was in 2020 at 186.3 million US dollars, while the most significant decrease occurred in 2019, with a 17.1% drop.

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

During 2018-2021, China, Thailand, and Singapore formed the core market cluster for Australia's milk powder exports by value, with a combined share of 73.4%. China dominated at 58.7%, followed by Thailand at 8.8%, and Singapore at 5.9%.

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 powder with fat content of >1.5% to Australia

Imports in kind, t

After two years of growth, Australia's imports of milk powder with over 1.5% fat content declined. In 2021, imports totaled 37 294 tonnes, showing a notable 12.9% decrease from the previous year. Over the 2018-2021 period, imports increased by 31.6%, with an annualized growth rate of 9.6%. The peak import volume was recorded in 2020 at 42 818 tonnes, while the largest increase happened in 2019, with a 31.8% rise.

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

From 2018 to 2021, New Zealand overwhelmingly dominated Australia's imports of milk powder with over 1.5% fat content by volume, capturing 88.6% of total flows. Other countries each held substantially smaller shares.

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

Following a two-year upward trend, the value of Australia's milk powder imports with over 1.5% fat content fell. In 2021, imports amounted to 153.3 million US dollars, indicating a modest 6.3% decline over the past year. Between 2018 and 2021, import value increased by 26.5%, with a compound annual growth rate of 8.1%. The highest value was recorded in 2020 at 163.6 million US dollars, while the largest increase occurred in 2019, with a 19.0% gain.

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

In 2018-2021, New Zealand was the key supplier of milk powder with over 1.5% fat content to Australia by value, accounting for 82.7% of total imports. A diverse group of 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