With most major dairy export regions
worldwide enjoying favourable weather,
global milk supply growth has persisted,
despite a depressed farmgate price
outlook for many of Australia’s
competitors. Production expectations
continue to reect a slowdown during
2015, but at the moment, this seems a
long way off.
Having a diverse range of markets and
products has paid dividends for
Australian exporters this season. Interest
in importing bulk powders remains
relatively quiet in China, as large
inventories take time to consume and
surplus domestic production is directed
into powder. Assessments of the
timeframe for a signicant recovery in
that market are increasingly being
pushed into early 2016. Double digit,
price-driven volume growth in exports to
Southeast Asia, Mexico and the Middle
East is moderating as inventories are
rebuilt. Exports to Russia continue to be
hamstrung by the country’s embargo on
key suppliers. A rm US domestic
market is helping absorb growth from
that country’s Midwest and northeast;
while global dairy exports to Japan for
the 12 months to February increased to
their highest since 2007, their strongest
growth since 2005.