Australian June milk in doldrums

by | Aug 31, 2022 | Australia, Volume trends

Milk production fell 9.2% YOY in June, bringing 2021/22 output to 8.5bn litres, 3.9% down on the season prior. While a significant YOY drop, June is the second-lowest production month on average. Milk production was down across all states for the season and continued the trend of YOY declines since June 2021.

In Victoria, June output dropped 9.0% YOY with the largest monthly drop recorded in the West (-9.6% YOY), while Gippsland fell 9.4% and northern Victoria was down 7.8%. Full season output in Victoria fell 4.1% compared to the 2020/21. In NSW output fell 10.3% YOY in June, but the season finishing only 0.3% behind prior year. Tasmania finished the season 7.7% lower than the prior year comparative, as June production fell 11.5% YOY. In South Australia, milk output plummeted 10.5% YOY in June, finishing the season 1.8% down on the prior comparative.

Meanwhile, Fonterra Australia reported a 2.7% YOY fall in July milk collections, to 5.3m kgMS as off-farm collections and third party intake fell. Fonterra’s new season outlook remains balanced with increased likelihood of another La Niña weather pattern developing in late winter or early spring.