Australian cheese output climbs as processors focus on value over volume
Australia boosts 2025 forecast, prioritises high-value varieties
17 June 2025
1 minute read
By: Australia’s cheese production is expected to reach 395,000 metric tons in 2025, a 5% increase from earlier projections, according to FAS/Canberra. Cheese now accounts for 37% of the country’s total milk pool and more than half of all manufacturing milk use.
This production shift reflects a long-term industry strategy to extract more value from limited milk supplies. As national milk output plateaus, dairy processors have scaled back other manufactured products—like butter and milk powders—to maintain strong cheese volumes.
Australian cheesemakers have increasingly focused on non-cheddar, premium varieties for both domestic and export markets. Although Australia produces more cheese than it consumes, imports of specialty cheeses are expected to rise gradually to meet growing consumer demand, especially as the population expands. Most imports to date have served the food service sector, but higher-end imports are beginning to gain traction.
