Australia losing its appetite for dairy imports, latest trade data reveals

Dairy Australia's latest data reveals a decrease in dairy imports into Australia, with a 9.1% drop for the financial year to May compared to the previous year. The decrease includes a 6.4% drop from New Zealand, a 10.3% drop from the European Union, and a significant 23.6% drop from the United States. However, imports have bounced around year to year, with a 17% increase in 2022-23 and a 62% increase over the past decade. Despite the decrease, Australia's processors have blamed high dairy imports for a 10-16% drop in farmgate prices for the 2024-25 season. Meanwhile, Australian processors have capitalized on high butter prices, exporting more butter and cheese.

While Australia's dairy processors have blamed this season's lower farmgate prices in part on an influx of imports, the latest figures paint a different picture. Dairy Australia data reveals dairy imports into Australia are down 9.1 per cent for the financial year to May compared with the same period last year. Imports from New Zealand are down 6.4pc, from the European Union 10.3pc and from the United States a massive 23.6pc. And while data shows imports in 2022-23 were up 17pc on the previous year and 62pc on a decade ago - the picture is not so clear cut. Australia's dairy imports bounce around from year to year. For instance, in 2017-18 Australia imported 334,673 tonnes of dairy, just 2.6pc lower than 2022-23's record amount. Imports also grew at a time when Australian milk production was in decline. The latest figures reveal imports of all the major categories have fallen. Cheese imports are down 4077 tonnes or 4pc, while butter imports are down 9444 tonnes, a massive 25pc. ...