A new USDA Foreign Agricultural Service (FAS) GAIN report projects Australia’s milk production to increase more than 2% in 2021 to 9.4mmt, continuing the recovery from 2020 trends boosted by good pastures conditions and drought-breaking rains.

With higher local supply, manufacturers are expected to focus on boosting cheese production at a faster rates than milk collections, but still with healthy gains for WMP and butter (on relatively small absolute volumes) while SMP production is projected to be flat at 155,000t. Higher output of cheese is expected to lead to lower imports next year of 90,000t. Domestic cheese consumption and exports are both projected to increase.