Australia’s milk production rose 4.1% YOY in June to 623.5m litres. This was the seventh consecutive monthly expansion in YOY terms, bringing milk supply over the full 2019/20 season (July-June) just 0.2% below the prior season to 8.78bn litres.

In the month of June, production increased across all states with the exception of Queensland (-9.6% YOY). June milk supply in Victoria rose 5.1%, the result of stronger growth in Gippsland (+13% YOY) and Northern Victoria (+5.7% YOY). Meanwhile, supply in Western Victoria contracted 0.7% YOY in June and 3.6% over the full season.

Meanwhile, Fonterra Australia’s milk output fell 6.5% YOY in July to 5.1mkg of milksolids. According to the latest Fonterra Global Dairy Update, the fall in intake was largely due to “a conscious decision to reduce third-party milk intake and focus on value”.