The regions experienced heavy rainfall in comparison to the same periods in 20. 81% of the milk is produced in South Australia, New South Wales and Victoria.The primary influence on the milk production estimate for 2020 and the further forecast improvement in 2021 is the improved rainfall across most of the dairy-producing regions in the first half of 2020.The positive outlook for 20 is due to the following reasons:ĭrought-breaking rains commenced in early 2020 Source: Dairy Australia, Milk Production (Litres '000s) The region not only witnessed drought conditions in the past few months but a large number of dairy farmers in the region exited the business. Queensland was the only region which recorded a fall in the milk production. Following Tasmania, South Australia similarly had an increase of roughly 5% and Victoria with an improvement of 2%. Tasmania recorded an increase of approximately 6% in January to September 2020 period (YTD) compared to the same period in 2019. The rebound is most likely to flow into 2021, with milk production forecasted at 9.4M MT which is 2% more than the 2020 estimate of 9.2M MT and a 4% increase over the 2019 drought-impacted production of 8.8M MT. The dip in the prices along with adequate and good quality fodder will enable the farmers to achieve higher yield per cow and improve the overall milk production. As rainfalls commenced, the fodder production increased and the dairy producers started benefiting from the increased availability of fodder at lower prices. However, in mid-2020, milk-producing regions in the country experienced drought-breaking rainfall which brings hope for the turnaround of the dairy industry. It is expected that the rebound in milk production will flow into 2021 and record production of 9.4M MT which is 2% more than the 2020 estimate.Īustralia witnessed severe drought conditions in 20 due to which the milk production of the country fell flat. As fodder production and supply increased, dairy farmers had access to high-quality animal feed which resulted in a higher yield per cow and eventually an increase in the milk production numbers. The heavy rains boosted the fodder production in the region and pushed down the inflated fodder prices. Australian dairy industry witnessed a turnaround as drought-breaking rains occur in mid-2020.
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