Australia: Mixed seasonal conditions balanced with positive global outlook for dairy

Published 2024년 12월 5일

Tridge summary

The 2023/24 season ended strongly for Australian dairy farmers due to high milk prices and favourable weather, despite potential challenges like lower prices and climatic issues expected in the 2024/25 season. The Dairy Australia report indicates high profitability but concerns over high operating costs and climatic challenges. National milk production slightly increased, but there are concerns about labour and farm exits, with a predicted slight decrease in the national milk pool due to climatic conditions. Improved export conditions and domestic retail sales have increased the price competitiveness of Australian dairy products. However, global economic constraints, especially in China, and geopolitical uncertainty could influence global markets. Domestic market conditions have also improved, with increased volume sales of dairy products, but value growth is under pressure due to discounting of private-label dairy.

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

Original content

Comparatively high farmgate milk prices and favourable weather in some regions ensured the 2023/24 season finished strongly for Australian dairy farmers. But Dairy Australia's (DA) latest Situation and Outlook report is more cautious for the remainder of the season. The December 2024 report shows that since the start of the 2024/25 season, lower farmgate milk prices have increased margin pressure on dairy farm businesses. That improved Australian dairy products' competitiveness, coinciding with export conditions strengthening and volume growth in domestic retail sales. Milk production had continued to grow relative to last season. However, DA Analysis and Insights Manager Eliza Redfern said while profitability was strong overall, persistently high operating costs and ongoing climatic challenges were likely to have an impact this season. "The profitability of Australian dairy farming businesses was high over the 2023/24 season, as revealed by Dairy Farm Monitor Project (DFMP) ...

Source: Farmweekly