In Year 2000 there was a major change in the Australian dairy industry.
The 7 dairy industries which could not trade across state boarders were allowed free access to all markets.
The markets in each state were divided broadly into quota states and pooling states.
The result has has not been the same in all states.
Small factories in the “quota states” were not efficient and drifted into disuse. Stored products (cheese, butter, Icecream, UHT, yoghurt etc) came from the “pooling states” who kept telling those on year round supply contracts that they were inefficient.
In the mean time NZ and Denmark allowed one single Cooperative to gain world scale in processing and marketing. (just like the big banks) these companies now out compete us on the International market – although we conveniently add Holland, germany, Bella Russia and more in the EU. So we can claim 4th spot ( as we keep our wetsuits warm with Bodily fluids)
The point I am trying to make is that Australia IS LOSING MARKET SHARE INTERNATIONALLY. While various organisations still promote us as major exporters.
The truth is that we do import some cheaper products and sell others at a higher price, but the value in day to day Australian dollars (A$) has gone down by 66% (2/3) and in reality more, when inflation is included.
The Reserve Bank Of Australia (RBA) inflation calculator – indicates that Australia’s dairy exports in 2002 were worth $4.4 billion in today’s money.
So the drop in “Balance Of Trade” is actually closer to 3/4. ($4 Billion down to $1 Billion)
The retreat has not been pretty or clean.
This chart may help you understand how Australia got into this pickle.
This chart has a friend, which looks at how much milk is required to make all the dairy products consumed in Australia. This chart shows that if All dairy products CONSUMED IN AUSTRALIA, were MADE IN AUSTRALIA – there is NOT ENOUGH milk IN Australia to make them.