Australian manufacturers produce a range of milk powders. The technology used in both the production and use of powders has seen the range of
specifications available from Australian manufacturers expand in line with customer needs.
The most obvious trend in Australian milk powder production was previously the steady increase in the share of whole milk powder (WMP) output. Since 2001/02 this trend has reversed and skim milk powder (SMP) production has become the predominant milk powder. In 2017/18 SMP accounted for close to 70% of milk powders produced.
In recent years, local dairy companies have had access to smaller milk production volumes and a wider variety of markets. As a result, these companies have been more flexible with their product mixes to take advantage of relative movements in international commodity prices. Differing market access arrangements also impact on the competitiveness of product pricing. For example, local producers will be at a competitive disadvantage where Australia may not have negotiated a Free Trade Agreement, but a competitive supplier country has already done so. This
impacts local production mixes because the bulk of Australia’s milk powders are sold into export markets.
Australian production of milk powders (tonnes)
|Skim milk powder||224,061||210,964||242,266
*includes infant powder
Source: Dairy manufacturers