Butter and Dairy Product Manufacturing in Australia - Industry Market Research Report

Sour milk: Butter production has melted as milk supplies are siphoned off to other manufacturers

Butter and other dairy product manufacturers have faced challenging conditions over the past five years. Global dairy prices have been volatile over the period, declining overall. Production of butter and other products like buttermilk and flavoured milk have fallen substantially because of major shifts in overseas demand and local consumer preferences. Milk supply constraints have caused butter production to plummet since 2017-18. The COVID-19 pandemic also created volatility in demand and prices. That's why revenue is declining at an average annual rate of 2.9% over the five years through 2022-23, to $8.12 billion. This trend includes a drop of 5.2% in 2022-23.

Manufacturers primarily produce dairy products, like butter, yoghurt, condensed milk, evaporated milk and other dairy products. Cheese, ice cream, milk and milk powder manufacturing is not included in the industry.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.