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

Published 2024년 6월 3일

Tridge summary

Australian farmgate milk prices have opened 10-16% lower than last year, with most processors in southern regions setting prices around $8 per kilogram of milk solids. This cautious pricing approach, influenced by uncertain demand in China, domestic cost-of-living impacts, and a cautious market outlook, contrasts with last year's aggressive pricing. Farmers are advised to budget based on these lower prices. Rabobank predicts minimum farmgate milk prices in the south to range between $8-8.20/kg MS, down approximately 11% from current pricing. Although there is potential for dairy prices to increase due to a global dairy commodity market recovery, Rabobank's analyst does not expect this within the next 12 months due to sluggish global market fundamentals.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

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. ...

Source: Farmweekly