Despite softening global dairy prices, the volume of Australian milk powder exports have increased 16.5 per cent year-on-year – for the July to August period, according to Rural Bank’s latest Australian Dairy Update.
The increase is being driven by high demand from Malaysia and China.
As a result, Rural Bank’s Ag Answers team is now forecasting a 43 per cent increase year-on-year in the volume of Australian milk powder imported by China for the calendar year of 2017.
Their dairy update revealed China’s import pattern changed dramatically in the last few months with a 53 per cent surge in Australian milk powder imports having been recorded for the January to August 2017 period.
Rural Bank general manager for agribusiness Andrew Smith said the increase in Chinese demand for Australian milk powder was encouraging for Australian dairy farmers.
«The out of cycle rise in Chinese demand for Australian milk powder, combined with year-on-year increases in the value of dairy exports to Singapore and Malaysia, means that three of the five main Australian export markets are performing well despite lower global prices,” he said.
«This is good news for dairy farmers and highlights once again the strong appetite and demand for Australian dairy products throughout Asia.”
According to the Australian Dairy Update, national milk production is also tracking slightly above this time last year, with South Australia and Victoria leading the way with 12.7 per cent and 0.9 per cent increases respectively.
To view the full Australian Dairy Update, visit: www.ruralbank.com.au/dairy