Australian milk production forecast to rise in 2024

Published 2023년 12월 21일

Tridge summary

Beef cattle prices and labour shortages have been major contributing factors in the decline of milk production in Australia over the past 3 years, but a rebuild in the beef herd, improved labour availability, and weaker beef cattle prices have stifled the incentive for dairy farmers to transition to beef cattle farming. Strong farmgate milk prices are expected to continue in 2024, fuelled by a growing number of domestic processors vying for a diminishing milk pool, with Australia consuming 65% of its production domestically. This reliance on domestic consumption and the ability to pass higher costs to domestic wholesalers has intensified competition for milk supply and led to farm-gate milk prices this season surpassing initial projections.

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

Original content

In Australia, milk production is forecast to increase 1% to 8.5 million tons in 2024 as beef cattle prices have fallen and labour shortages abated. Both issues have been major contributing factors in the decline in milk production over the prior 3 years, according to a recent USDA World Markets and Trade report for dairy. A rebuild in the beef herd after multi-year droughts from 2017-2019 saw significant conversions of dairy farms into beef cattle farms, where operations are less labor intensive, and operating costs are more easily controlled. Over the last 18 months, beef cattle prices have retreated considerably as beef cattle supplies rebounded. Labour shortages continue to be an issue for Australian dairy farmers, but have also improved as the number of working holidaymakers has returned to pre-pandemic levels and workers entering as part of the Pacific Australia Labor Mobility (PALM) scheme are at record levels. The dual effects of improved labor availability and ...

Source: The Cattle Site