Milk Powder

Australian manufacturers produce a range of milk powders. New technology in the production and use of powders has seen the range of specifications available from Australian manufacturers expand in line with customers’ needs.

In the years up until the peak production season of 2001/02, the most obvious trend in powder production was an increase in wholemilk powder (WMP) output, with skim milk powder (SMP) production remaining relatively stable. Since 2002/03, production of milk powders have been most affected by the reduced availability of milk and the trend has changed. The production of both forms of powder fell sharply, followed by similar patterns of recovery, with WMP volumes making up nearly half the total milk powder production up until 2004/05. Strong commodity prices in recent years saw a significant re-balancing of company product mixes from 2005/06 towards SMP (and butter/butteroil) to take advantage of the higher relative export returns available from these products. 2007/08 saw a trend back towards WMP; but this was reversed last year with SMP approaching 60% share of total milk powder production.

Australian production of milk powders (tonnes)

Less than 15% of Australia’s powder production is sold domestically. Retail outlets account for only a small percentage of domestic sales, with local usage being mainly as a food ingredient.

Exported milk powder is often recombined into liquid milk products, particularly in tropical climates where fresh milk supplies are not available. It is also used in bakery products (improving the volume and binding capacity of bread, and ensuring crisper pastry and biscuits), confectionery and milk chocolates, processed meats, ready-to-cook meals, baby foods, ice-cream, yogurt, health foods and reduced-fat milks. Industrial-grade powder is used for animal fodder.