In its newly released report on milk protein scarcity, RaboResearch says the Australian dairy industry must increasingly focus on maximising value from scarce milk protein. With limited milk supply, future export growth is likely to shift its focus to higher-value, premium markets as cheese faces pricing pressure from category maturity, private labels, imports and softer global prices.

High-protein dairy products such as protein yoghurt, cottage cheese and high-protein milk offer growing opportunities, alongside whey protein for sports and health nutrition. Rabobank expects these products to complement rather than replace cheese, as demand for protein-rich foods continues to rise.