DESPITE softening global dairy prices, the volume of Australian milk powder exports has increased by 16.5 percent year-on-year for the July to August period, due to increased demand from Malaysia and China according to Rural Bank’s latest Australian Dairy Update.
As a result, Rural Bank’s Agribusiness Answers team is now forecasting a 43 percent increase year-on-year in the volume of Australian milk powder imported by China for the calendar year of 2017.
The new update reveals China’s import pattern has changed dramatically in the last few months with a 53 percent surge in Australian milk powder imports having been recorded for the January to August 2017 period.
Rural Bank Agribusiness general manager, 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.
“This is good news for dairy farmers and highlights once again the strong appetite and demand for Australian dairy products throughout Asia,” Mr Smith said.