Australia's Dairy Industry Overview

Australia is renowned for its advanced and diverse dairy industry, playing a pivotal role in both domestic consumption and international trade. The landscape has seen notable shifts in recent years, driven by corporate decisions and market dynamics.

Dairy Cattle and Milk Production

As of the latest reports, Australia hosts approximately 1.43 million dairy cattle. The country's milk production volume is estimated at 8.8 billion liters per year. This robust output supports both local needs and international demands, with a distinct emphasis on quality and sustainability.

Milk Processing and Cheese Production

Annually, the processing volume of milk reaches around 9.1 billion liters, inclusive of imports and re-exports. Australia's cheese production volume stands at approximately 365,000 tons per year, with projections indicating an increase to 435,000 tons by 2024, driven by enhanced milk supplies and a focus on profitability despite rising input costs.

Milk Powder and Whey Production

Australia produces an estimated 300,000 tons of milk powder and whey per year. These products are essential for both domestic consumption and exports, catering to diverse global markets.

Key Enterprises and Market Players

Significant enterprises in Australia’s dairy market include:

• Saputo Inc.
• Coles Group Limited
• Beston Global Food Co.
• Yili (adhering to top international dairy standards for multiple regions)

Major Dairy Plants

The industry's processing facilities are numerous, with some prominent ones being:

• Saputo Milk Processing Plants (recently sold to Coles Group Limited)
• Beston Global Food Co.'s Dairy Operations

Export and Import Statistics

Despite robust domestic production, Australia is a net importer of certain dairy products, such as butter, due to demand outstripping domestic supply. Dairy exports, including milk powder, cheese, and whey, play a crucial role in the national economy, adapting dynamically to meet the demands of regions like the U.S., EU, China, and Southeast Asia.

Recent Industry Events

• Saputo Inc. sold two fresh milk processing facilities to Coles Group Limited, a significant shift aimed at refocusing business strategies.
• Most Australian milk processors are maintaining milk prices below last season's levels, a consequence of increased competition from imported dairy products and strategic moves by the Australian Dairy Products Federation.
• Beston Global Food Co. announced it is considering selling its dairy operations to sustain its financial stability.
• Coles has reduced the price of 1kg cheese blocks, making cheese toasties more affordable.
• New Zealand's proposal was rejected at a FSANZ meeting.
• Saputo Inc. has announced changes in its board of directors.
• Saputo Dairy Australia (SDA) decided to close the historic King Island Dairy factory, impacting 58 employees.
• Beston Global Food Company, the largest dairy producer in South Australia and seventh-largest in Australia, employs nearly 300 people and continues to build relationships in international markets.
• Beston Global Food Company has entered voluntary administration due to 'exceptionally high operating costs' driven by onerous energy prices.
• KPMG was appointed as Beston's administrator, effective September 20.
• Pure Dairy's new facility in Dandenong South is set to transform Australia's dairy processing industry.

Modified: 2024/10/09

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