November 17, 2005

USDA: Australia dairy and products annual 2005
 

Australia's fluid milk production is forecast to increase 4 percent in 2005/06, the result of heavy rainfall in the first quarter, which provided greatly improved pasture conditions and availability of irrigation water. 

Australia's dairy industry is primarily a pasture-based production system and rainfall has a large impact on productivity.  The improvement follows three consecutive years of drought that saw milk production decline from record levels.

Fluid milk production is forecast at 10.8 MMT for 2005/06, up 4 percent from the previous year.

Industry observers continue to assess the impact of the 2000 restructuring of the dairy sector in Australia. Since the implementation of these programs, there have been significant on-farm adjustments, including farm exits in some regions, and increased milk output to offset the income effect. 

In addition, Dairy Australia reported output growth from scale expansion, improved productivity of cows and land, with average herd size increases, purchases of additional land, and improved land carrying capacity, and improved feed inputs and per cow milk yields.

Australia's National Livestock Identification Scheme (NLIS) for cattle became mandatory effective July 1, 2005, with the exception of the states of Queensland and the Northern Territory, which will not achieve full compliance until 2007. 

Under NLIS, all livestock movements over the lifetime of the animal are recorded electronically. NLIS is expected to deliver much improved trace-back capacity to assist with issues such as disease and chemical residue control.

For the full USDA report, click here.