Australian milk production is firmly back in growth mode following a disastrous 15 months for the industry where milk production plunged. However, the most recent figures from Australia’s dairy industry shows that for the last four consecutive months Australian milk production has bounced back strongly.

For May, Australian milk production was up 6% year on year to 650m litres. This follows a 6.5% increase in April milk production and a 7% increase in March milk supplies. The jump in May milk production brings Australian milk production for the 2019/20 milking season, which runs from July 2019 to June 2020, to a cumulative 8.1bn litres of milk, which is down 0.6% on the 2018/19 milking season.

After an incredibly difficult number of years for Australian dairy farmers, the worst appears to be over with milk production on the rise once again.

Dairy industry

Since late 2018, Australia’s primary dairy industry fell into sharp decline as a result of very weak milk prices, extremely challenging weather (drought and wildfires) and the loss of the country’s last major co-op Murray Goulburn.

The combination of these challenges saw Australian milk production fall rapidly month after month throughout the latter half of 2018 and all of 2019. From October 2018 until the end of last year, Australian milk production collapsed by almost 7% in volume, which equates to a drop in milk production of over 700m litres of milk.

The return to growth over recent months suggests the worst is over for hard pressed dairy farmers in Australia and the 2020/21 milking season could bring more optimism.