Australian Dairy Industry In Focus 2009 - Dairying For Tomorrow

Milk powders
Australian manufacturers produce a range
of milk powders. New technology in the
production and use of powders has seen
the range of specifications available from
Australian manufacturers expand in line
with customers’ needs.
In the years up until the peak production
season of 2001/02, the most obvious trend
in powder production was an increase
in wholemilk powder (WMP) output,
with skim milk powder (SMP) production
remaining relatively stable. Since 2002/03,
production of milk powders have been
most affected by the reduced availability
of milk and the trend has changed. The
production of both forms of powder fell
sharply, followed by similar patterns
of recovery, with WMP volumes making
up nearly half the total milk powder
production up until 2004/05. Strong
commodity prices in recent years saw
a significant re-balancing of company
product mixes from 2005/06 towards
SMP (and butter/butteroil) to take
advantage of the higher relative export
returns available from these products.
2007/08 saw a trend back towards WMP;
but this was reversed last year with SMP
approaching 60% share of total milk
powder production.
Less than 15% of Australia’s powder
production is sold domestically. Retail
Figure 21
Australian production and exports of skim milk powder (tonnes)
Production 250,000
Exports
200,000
Tonnes
150,000
100,000
50,000
0
2003/04
2004/05
2005/06
Figure 22
Australian production and exports of wholemilk powder (tonnes)
Production 200,000
Exports
150,000
2006/07
2007/08
2008/09(p)
Source: Dairy manufacturers and ABS
Tonnes
100,000
50,000
0
2003/04
2004/05
2005/06
2006/07
2007/08
2008/09(p)
Source: Dairy manufacturers and ABS
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Australian Dairy Industry In Focus 2009