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

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) ...