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Australian Dairy Export Income To Drop By 24% in 2007
Jun 19, 2007

Dairy Industry in Australia will see its export income decline by over 24% to reach below US$ 1.57 Billion in the year 2006-07.

Dairy Industry in Australia will see its export income decline by over 24% to reach below US$ 1.57 Billion in the year 2006-07 as a consequence of a sharp decrease in production because of drought, news published on AP Food Technology on January 4, 2007.

Dairy exports of Australia account for around 13% of the global market. Japan is Australia's most important export market accounting for 16% of exports by value. Another main export markets of Australia are Singapore, the Philippines, Malaysia and Indonesia.

Due to the most terrible drought in Australia combined with a small amount of available irrigation water resulted in shrinking pastures for dairy cattle and high costs of fodder. Several farms have already dried-off cows and cut the number of herds anticipating that drought conditions will continue over summer.

As a result, the total milk production in Australia is estimated to decline by approximately 11% to nine Billion liters in the year 2006-07, as per the most recent figures from the ABARE (Australian Bureau of Agricultural & Resource Economics).

The figures also indicate that the total milk powder products will decrease by 27% to US$ 192.30 Million. Butter export will be down by 46% to US$ 95.36 Million and Australian cheese export will decline by 34% to US$ 436.60 Million.

"Due to the drought and the decrease of dairy products exports, New Zealand which is one of the top five dairy exporters in the world and export around 90 percent of its dairy products get a chance to get exposure to increase their exports to the targeting markets of Australia." as per an analyst of
RNCOS.

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