Australian dairy exports recover in November

Australian dairy exports strengthened in November, rising by 8.98% or 26.7 million kilo LME. In terms of product volumes, exports increased by 14%, equivalent to 4,274 tons.Despite the overall improvement, exports of whole milk powder (WMP), whey, butter, and butteroil remained weak during the month, while shipments of all other dairy products recorded growth. Australian Dairy exports November (tons) Product 2024 2025 ∆ ∆% SMP 18,793 21,260 2,467 13.13% WMP 5,152 4,940 -212 -4.11% Whey 2,422 1,327 -1,095 -45.21% I/F 991 1,944 953 96.17% Lactose 224 553 329 146.88% Butter 1,203 732 -471 -39.15% Butter Oil 319 220 -99 -31.03% Cheese 15,416 18,020 2,604 16.89% Milk 13,591 15,831 2,240 16.48% Total 30,529 34,803 4,274 14.00% Year-to-date (YTD) developments largely mirror the monthly trends observed earlier in the season, although skim milk powder (SMP) has now moved into negative territory. This decline is mainly driven by a sharp reduction in SMP imports by key destinations, including China, Bangladesh, and Saudi Arabia.Overall, YTD exports through October stood at -6.56%, or -181 million kilo LME, improving slightly from -7.86%, or -192 million kilo LME, recorded a month earlier. In terms of product tonnage, exports were down by 2.42%, representing a decrease of 13,195 tons. Australian Dairy Exports YTD November (tons) Product 2024 2025 ∆ ∆% SMP 150,817 144,548 -6,269 -4.16% WMP 50,110 46,228 -3,882 -7.75% Whey 25,375 14,212 -11,163 -43.99% I/F 12,842 15,119 2,277 17.73% Lactose 7,729 3,770 -3,959 -51.22% Butter 14,264 7,988 -6,276 -44.00% Butter Oil 3,797 3,336 -461 -12.14% Cheese 151,228 156,787 5,559 3.68% Milk 129,461 140,440 10,979 8.48% Total 545,623 532,428 -13,195 -2.42% Challenging weather conditions across several dairying regions, combined with tighter farm margins, continued to weigh on milk availability for most of the year. As a result, milk flows remained under pressure until recently. December marked the first month of the calendar year in which milk production showed a year-on-year increase. Australia milk production YTD December Month 2024 2025 ∆ ∆% January 727,200,000 708,200,000 -19,000,000 -2.61% February 601,400,000 572,400,000 -29,000,000 -4.82% March 596,100,000 595,900,000 -200,000 -0.03% April 591,800,000 594,000,000 2,200,000 0.37% May 645,100,000 620,300,000 -24,800,000 -3.84% June 596,300,000 565,100,000 -31,200,000 -5.23% July 579,400,000 556,300,000 -23,100,000 -3.99% August 681,900,000 661,500,000 -20,400,000 -2.99% September 812,500,000 808,800,000 -3,700,000 -0.46% October 917,800,000 895,900,000 -21,900,000 -2.39% November 868,000,000 849,200,000 -18,800,000 -2.17% December 799,400,000 814,100,000 14,700,000 1.84% Year to date December 8,416,900,000 8,241,700,000 -175,200,000 -2.08% Against the backdrop of subdued domestic milk production, Australian dairy imports expanded sharply in November. Imports rose by 45.93%, or 38 million kilo LME, following a 30.17% increase, or 30 million kilo LME, in October. On a product basis, imports increased by 44.44%, equivalent to 6,295 tons. Australian Dairy Imports November (tons) Product 2024 2025 ∆ ∆% SMP 551 699 148 26.86% WMP 1,846 3,791 1,945 105.36% Whey 561 730 169 30.12% Cheese 7,700 10,608 2,908 37.77% Butter 2,454 3,508 1,054 42.95% Butter Oil 1,053 1,124 71 6.74% Total 14,165 20,460 6,295 44.44% On a YTD basis through November, Australian dairy imports remained in positive territory. However, butter, SMP, and WMP imports declined compared with 2024 levels. Overall YTD import growth edged higher, increasing from 5.94% in October to 6.25% in November, corresponding to an additional 70 million kilo LME. In terms of product volumes, imports were up by 6.91%, or 12,713 tons. Australian Dairy Imports YTD November (tons) Product 2024 2025 ∆ ∆% SMP 10,881 9,156 -1,725 -15.85% WMP 35,542 34,721 -821 -2.31% Whey 5,658 8,963 3,305 58.41% Cheese 93,611 104,583 10,972 11.72% Butter 29,784 27,947 -1,837 -6.17% Butter Oil 8,506 11,325 2,819 33.14% Total 183,982 196,695 12,713 6.91%