Australian dairy imports and exports recover in February

Australian exports were weak in January, declining by 6.38% (-30 million kilo LME), following a decrease of 8.47% (-30 million kilo LME) in January 2026. In terms of commodity volumes, exports fell by 3.16%, equivalent to a reduction of 1,696 tons.In February, export volumes increased across most product categories, apart from whole milk powder (WMP), butter, butteroil, and cheese. Australian dairy exports YTD February (tons) Product 2025 2026 ∆ ∆% SMP 25,741 27,275 1,534 5.96% WMP 8,252 5,460 -2,792 -33.83% Whey 3,251 3,460 209 6.43% I/F 1,742 1,892 150 8.61% Lactose 502 1,102 600 119.52% Butter 1,686 907 -779 -46.20% Butter Oil 769 435 -334 -43.43% Cheese 29,475 24,373 -5,102 -17.31% Milk 21,749 26,268 4,519 20.78% Total 53,679 51,983 -1,696 -3.16% Challenging weather conditions in several dairying regions, combined with tighter farm margins, continued to put pressure on milk flows throughout most of the year. However, the period from December through February marked the first time within the rolling six-month period that production showed an increase. Overall, milk production for the six months declined by 0.34%, equivalent to 16 million kilo. From February onwards, the sector has entered the off-season, with milk volumes approximately 25% below the annual monthly average. Australian milk production (Kilograms) Month previous year Current ∆ ∆% 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% January 708,200,000 718,800,000 10,600,000 1.50% February 572,400,000 575,641,000 3,241,000 0.57% Production September - February 4,678,300,000 4,662,441,000 -15,859,000 -0.34% Despite weak milk production in Australia for most of last year, imports declined slightly in January by 0.66% (-0.74 million kilo LME). However, imports rebounded strongly in February, increasing by 26.15% (56 million kilo LME). In terms of commodity volumes, this represents an increase of 25.15%, or 9,078 tons. Australian dairy imports February (tons) Product 2025 2026 ∆ ∆% SMP 2,508 1,467 -1,041 -41.51% WMP 5,949 6,536 587 9.87% Whey 1,202 920 -282 -23.46% Cheese 18,850 19,853 1,003 5.32% Butter 5,929 7,361 1,432 24.15% Butter Oil 1,664 9,043 7,379 443.45% Total 36,102 45,180 9,078 25.15% Import volumes rose across all commodities, except for skim milk powder (SMP) and whey.