USDA expects less Australian dairy production

Another foreign country is expecting a decline in dairy production.  USDA’s Foreign Ag Service says Australia’s 2023 milk production is forecast to decline by an additional two percent to around 8.4 million metric tons.  Australia’s dairy sector is already down around six percent for 2022.

USDA says Australian food factories are expected to use around five million metric tons less milk, but they expect some growth in fluid milk exports.  Cheese will be their top product with steady production, but Australia is expecting declines in the production of butter, skim milk powder, and whole milk powder.

A labor shortage is also expected to prevent Australian farmers from taking advantage of excellent seasonal production conditions and higher farmgate prices.

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