Australia: Dairy and Products Annual

Milk production for 2025 in Australia is forecast to increase by 1.1 percent to 8.8 million metric tons (MMT) after strong growth of 2.7 percent for 2024 at an estimated 8.7 MMT from previous years of declining production. Expectations for 2025 would be higher if not for challenging dry conditions in parts of Australia’s dairy-producing regions. Fresh milk consumption is forecast to reverse a five-year decline. Factory use of milk is expected to rise, with much of it forecast to be diverted to cheese production. Skin Milk Powder (SMP) and Whole Milk Powder (WMP) production is forecast to remain stable, but there is a slight increase in butter production. Exports for SMP, WMP, and butter are forecast to moderate in 2025 after strong results so far in 2024.