The biggest drop was in New South Wales, where production was down 8.4% year-on-year. This is followed by South Australia, where there was a drop of 7.5%.

The Australian season to date (July to January) has seen bigger declines, down 8.2% at 5.7m litres.

The year-on year-declines were greatest in October, down 11.7% year on year, followed by July (down 10.1%) and September (also down 10.1%). November and December were better (down 6.3% and 4.1% respectively).

Peak milk production

Australian milk production peak is in October and then goes down to a seasonal low from February to July.

Milkfat and protein

Australian milkfat and protein also fell year-on-year in January. Milkfat came in at 4.10%, down from 4.17% a year earlier. Protein came in at 3.28%, down from 3.29% in January 2016.

Global milk supply picture

Meanwhile, Dairy Australia’s February 2017 report concludes that the global milk supply picture remains cautiously positive for sellers, with only the US currently showing growth among the major exporters. New Zealand and the EU warrant close watching but for now milk flows in both regions are likely to remain constrained.

Powders take a tumble as EU volumes up

Drop in Australian milk collections

The latest Dairy Australia monthly milk collection data show milk production in January was down 5.9% year-on-year.