Chi­nese im­ports of milk pow­der to in­crease by 43 per cent

The Northern Star - Northern New South Wales Rural Weekly - - News -

WE’RE in the midst of a milk-pow­der boom and the dairy in­dus­try is set to reap the re­wards.

De­spite soft­en­ing global dairy prices, the vol­ume of Aus­tralian milk pow­der ex­ports has in­creased 16.5 per cent year-on-year for the July to Au­gust pe­riod, ac­cord­ing to Ru­ral Bank’s lat­est Aus­tralian Dairy Up­date.

The in­crease is be­ing driven by high de­mand from Malaysia and China.

As a re­sult, Ru­ral Bank’s Ag An­swers team is now fore­cast­ing a 43 per cent in­crease year-on-year in the vol­ume of Aus­tralian milk pow­der im­ported by China for the 2017 cal­en­dar year.

Its dairy up­date re­vealed China’s im­port pat­tern changed dra­mat­i­cally in the past few months with a 53 per cent surge in Aus­tralian milk pow­der im­ports recorded for the Jan­uary to Au­gust 2017 pe­riod.

Ru­ral Bank gen­eral man­ager for agribusi­ness An­drew Smith said the in­crease in Chi­nese de­mand for Aus­tralian milk pow­der was en­cour­ag­ing for Aus­tralian dairy farm­ers and could al­low pro­ces­sors and pro­duc­ers to cap­i­talise on any fu­ture in­creases in global dairy prices.

“The out-of-cy­cle rise in Chi­nese de­mand for Aus­tralian milk pow­der, com­bined with year-on-year in­creases in the value of dairy ex­ports to Sin­ga­pore and Malaysia, means that three of the five main Aus­tralian ex­port mar­kets are per­form­ing well de­spite lower global prices,” he said.

“This is good news for dairy farm­ers and high­lights once again the strong ap­petite and de­mand for Aus­tralian dairy prod­ucts through­out Asia.”

Ac­cord­ing to the Aus­tralian Dairy Up­date, na­tional milk pro­duc­tion is also track­ing slightly above this time last year, with South Aus­tralia and Vic­to­ria lead­ing the way with 12.7 per cent and 0.9 per cent in­creases re­spec­tively.

Fol­low­ing an ex­tremely dry Septem­ber, wel­come rain fell across most dairy re­gions of Aus­tralia in Oc­to­ber.

Weather con­di­tions are ex­pected to im­prove fur­ther in the com­ing months ac­cord­ing to the Bu­reau of Me­te­o­rol­ogy.

“Milk pro­duc­tion in­creases will be­come more fea­si­ble as Oc­to­ber rains sup­port good pas­ture growth,” Mr Smith said.

“There is also now a good chance of above av­er­age rain­fall oc­cur­ring across many dairy re­gions this sum­mer.

The Up­date pro­vides pro­duc­ers and in­dus­try with a con­cise anal­y­sis of the Aus­tralian dairy sec­tor.

To view the full Aus­tralian Dairy Up­date, visit www.ru­ral­bank.com.au/dairy.

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