Australian manufacturers produce a range of milk powders. The technology used in both the production and use of powders has seen the range of specifications available from Australian manufacturers expand in line with customers’ needs.
In the years up until the peak milk production season of 2001/02, the most obvious trend in local milk powder production was a steady increase in the share of whole milk powder (WMP) output. Since then, skim milk powder (SMP) production has become the predominant milk powder, now accounting for over 70% of milk powders produced in 2016/17.
The smaller milk production volumes in recent years and wider variety of markets has seen local dairy companies opportunistically changing their product mixes to take advantage of the relative movements in international dairy commodity prices. Differing market access arrangements also impact on the competitiveness of product pricing. For example, local producers will be at a competitive disadvantage where Australia may not have negotiated a Free Trade Agreement, but a competitive supplier country has already done so. This impacts on local production mixes because the bulk of Australia’s milk powder production volumes are sold into export markets.
Australian production of milk powders (tonnes)
|Skim milk powder||230,286||224,061||210,964||242,266
*includes infant powder
Source: Dairy manufacturers