The Australian scientific Office for agriculture and raw materials management ABARES estimates that in 2016/17, the milk production of the continent by three percent will decrease because more cows because of low milk prices are slaughtered.
The smaller milk offer of the fourth largest exporter of dairy products on the world market could boost the milk price in the world. The milk price has almost halved since 2014 because the global supply met with weak demand.
The Australian milk production will decline in the marketing year from 1 July 2016 to 30.06 2017 on 9.5 million litres, in March the estimate was still 9.8 million liters, so the Office. The reassessment comes after the world's largest dairy exporter Fonterra in New Zealand, and the largest Australian Dairy Murray Goulburn lowered their ex-farm milk prices.
The dairy farmers have warned that they need to send more cattle to the slaughter and thus in the long term will cause a smaller milk production. Then, the Government in Sydney granted loans to distressed farmers.
ABARES estimates that any increase in beef exports to two percent, which is favoured also by the good weather conditions in the East of the continent. These exports are estimated now 1.1 million tonnes, against 1.08 million tons in the March estimate.
