Oceania milk production was projected to increase 5% in 2015 due to higher cow numbers and favorable weather. Global milk production was also expected to be high with increased cattle populations, lower feed prices, and good weather. Higher global milk production would boost processing volumes and result in a 4.9% increase in skim milk powder production. Strong supply and competition between exporting regions would keep skim milk powder prices under pressure in 2015 despite steady domestic consumption growth.

1. Dairy scenario in 2015
 Oceania milk production would increase by around 5% in 2015 ( Jan-Dec) compared
to 2014 on the back of increase in cow heads amid expected optimum weather
condition
 Global milk production would be high as cattle population likely to increase as lower
feed price amid optimum weather condition
 Higher production of milk would boost higher processing volume across the global and
SMP production volume would increase by 4.9%. At the same FTA between China
and Australia would boost higher processing of WMP/SMP and cheese.
 By assuming deficit monsoon in 2015/16 amid incremental growth in cattle population
would support increase in milk volume by 3.2% and estimated liquid milk production
volume would be around 144 million mt.
 By considering historical conversion volume of liquid intomilk powder, it is estimated
that domestic SMP production would be around 540 th mt, higher by 7.5% compared
to 2014
 Global higher supply of SMP would keep a tough competition between SMP Oceania,
SMP EU and SMP India.
 Strong supply amid tough competition would keep price of SMP under pressure in
2015. Export demand for SMP would be lower whereas domestic consumption would
steady growth in 2015