April's dairy market update

Highlights for dairy

• The average southern farmgate milk price has lifted 1.7 per cent from opening to sit around $8.25/kg MS. Burra and Lactalis are the latest processors to provide step ups to suppliers. Burra confirmed a 10 cent step up, and Lactalis 15 cents to average 8.35/kg MS and 8.40/kg MS respectively.
• February milk production in Australia was 4.8 per cent lower year-on-year. Dry conditions in southern states have seen Victoria, South Australia and Tasmania record their largest year-on-year declines in February. National season-to-date milk production now sits 0.1 per cent below last season. Year-on-year production is expected to continue to fall behind last season with weather outlooks showing little relief in the near term. Our full season forecast for milk production remains at 8.3 billion litres.
• Feeder steer prices are also expected to take a hit with the US 10 per cent tariff on Australian beef. Local prices are expected to soften in coming weeks, but US demand for Australian beef is expected to remain firm. This should see prices supported through 2025.

James Maxwell

Senior Agricultural Analyst

Jimmy is our Insights specialist for dairy which sits well with him due to his love of milk and cheese. His background is in cropping, having worked in the grains industry for over 15 years.