Milk Values in Other Markets

Here is a comparison of milk prices paid in other major dairy export regions and selected export markets.

This chart compares recent historical farmgate prices paid in major exporting dairy producers including the US, EU, NZ and Argentina – expressed in A$/litre. 

While Australia and NZ milk prices are set in annual milk supply agreements, they are shown in this chart to fluctuate for changes in the A$ v US$.

NZ prices in this chart for the current season are based on the current season estimate provided by Fonterra. US prices are based on monthly declared average prices across its milk pools. EU and Argentina’s prices are generally set monthly.

Sources: Freshagenda analysis from Dairy Australia, USDA, Fonterra, OCLA, Eurostat

This chart compares Australian farmgate prices with milk prices paid to dairy farmers in Australia’s two largest export markets – China and Japan – on an Australian cents per kg of raw milk basis (ignoring the different values for butterfat and protein that invariably exist). 

Australia’s two key export destination markets have domestic supply and source milk products from other exporting countries such as EU, NZ and USA. To remain a competitive supplier to these markets Australia must maintain a competitive milk price relative to alternatives, i.e. domestic supply and international competitors.

Sources: Dairy Australia, China MOA, Japan MAFF