• The most recent Global Dairy Trade auction, held in mid December 2014, posted a small increase in weighted prices. This, combined with expectations of weaker supply growth in 2015, may point towards price stabilisation in 2015.
•  Domestic production is tracking slightly higher than last year so far but has peaked early in western Victoria and the Murray and Goulburn areas in response to dry to very dry spring conditions. Gippsland is performing on par with previous seasons and Tasmania looks to be having an above average season.
•  There has been considerable interest in the impacts of China-Australia FTA (ChAFTA) on Australia’s dairy industry in light of the impact of the New Zealand-China FTA on New Zealand’s dairy industry. ChAFTA includes the removal of all tariffs on Australian dairy products within four to 11 years, although some discretionary barriers remain.

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• International Dairy Outlook