Australia's liquid milk exports fall to 38 million liters in 2022-23 - down 16 per cent

While fresh milk accounts for the overwhelming majority of milk sales in Australia, the share of supermarket sales by volume of UHT milk (heated to 140 degrees in two seconds) has increased over the past two decades. This has been further exacerbated by the Covid-19 pandemic and the associated panic buying due to longer shelf life.

Sales of flavored milk have also increased. Flavored milk is an important source of revenue for the industry due to higher unit prices. Sales of this milk remain distinctly regional, with strong local brands. South Australia has historically consumed two to three times more flavored milk than the national average. round demand. Demand in states like Victoria tends to be seasonal.

In the Australian dairy market, the two largest players are Bega Cheese and Lactalis Australia. Fonterra Australia and Saputo Dairy entered the Australian drinking milk market after 2011, securing brand deals with major supermarkets in Victoria and New South Wales. Some large retailers also directly supply milk for sale in supermarkets under their own brand. Brownes (Western Australia) and Norco (Queensland and northern New South Wales) have a more localized distribution.

Historically, Australia has exported only relatively small volumes of liquid milk. However, exports have increased significantly in recent years. After rising over the past five years, Australia's liquid milk exports fell 16 per cent in 2022/23 to around 238 million liters. This product was predominantly UHT. Almost 95 percent of the volume was exported to Asia, with the remainder going to Pacific island countries and some markets in the Middle East and Africa.