Milk production (million litres) by state Farmers in these states manage calving and feed systems to ensure flatter, year-round milk production. However, the seasonality of milk output in Queensland, New South Wales and Western Australia is much less pronounced, due to a greater focus on drinking milk and fresh products. The production of long shelf-life manufactured products in these parts of the country has enabled maximum milk utilisation within the seasonal cycle. Production peaks in October, tapers off until late-summer, and then flattens out into the cooler winter months. Australian milk production remains strongly seasonal in key south-eastern dairying regions, reflecting the predominantly pasture-based nature of the industry. Dairy farming in Australiaĭairy farming is concentrated in the temperate zone of Australia. This recovery was overshadowed by the COVID-19 pandemic, creating uncertainty in global and domestic markets. Higher rainfall combined with easing input costs and a relatively strong farmgate milk price improved farmer confidence in most regions. However, following a return to more favourable farming conditions in December 2019, Australia’s national milk pool started to recover. The first half of the 2019/20 season proved challenging for many dairy farmers in Australia, with ongoing dry seasonal conditions increasing the cost of feed and water. In many cases, farmers culled extensively during these years, taking advantage of higher beef prices to maintain cashflow. With the industry disruption caused by the late-season step-downs in 2015–16 and lower average milk prices in 2016–17, many farmers focused on cost control, refinancing and business consolidation, rather than longer term investments to increase production. In recent years, volatility in farmgate milk prices and farm incomes have impacted farmer confidence and the industry's ability to grow. The following decade saw a period of consolidation for the industry, with falling cow numbers and dry seasonal conditions constraining production, particularly in northern Victoria. This has been due to an increase in cow numbers and improved cow yields, up until the major widespread ‘Millennium drought' in 2002–03. Over the past 30 years, farm numbers have steadily decreased while the average farm size has grown. Australian milk production remains strongly seasonal in the key south-eastern dairying regions, reflecting the predominantly pasture-based nature of the industry. In 2019–20, Australian milk production decreased by 0.2% to 8,776 million litres. Dairy Australia provides the latest information regarding milk production sales, drinking milk consumption and yield per cow.
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