Slightly higher milk production combined with lower drinking milk sales increased manufacturing milk supply by 1.6% in the 2020/21 season. Dairy Australia reported national cheese production fell 1.3% in 2020/21 to 366,236t, with a corresponding 6.1% decline in production of whey powder. SMP output also declined over the 2020/21 season, down 4% to 153,741t.

With tight local milk supplies, processors focused on WMP and fats. WMP production rebounded, up 17.5% to 52,458t. Butter and AMF production were up 15% and 29.9% respectively for the period.