Australian farmgate milk prices drop 10-16 per cent on last year

Australian farmgate milk prices have opened 10-16 per cent down on last year. Most processors in southern regions have opened at about $8 a kilogram milk solids (see graphic above). Processors were required under the mandatory Dairy Code of Conduct to post their prices for 2024-25 by 2pm on June 3. Market analyst Milk2Market commercial development manager Richard Lange said this year was markedly different from last year . "There's this real air of caution from the companies," he said. Processors last year pushed up prices to chase milk. "They took a bet in the market and were willing to roll the dice and still chase milk," Mr Lange said. Last year processors anticipated there would be demand for products later in the season. This year they seemed to be keeping with what they knew they needed in terms of forward customer sales. "There's not much in front of them that would give them any hope that that's going to be a strong growth at least for the next six months," he said. ...