Situation & Outlook Report

Dairy Australia is the Australian dairy industry’s go-to source for the latest international and domestic market trends, statistics and facts, providing expert analysis and unbiased insights.

With ongoing favourable conditions in most regions, many dairy farmers are enjoying one of the best seasons in years as outlined in the latest Situation and Outlook report. As the La Nina weather event generated a generally wetter and cooler summer, feed production has continued to improve. Farmers have been able to store significant amounts of fodder for the winter months and demand for purchased feed is expected to be muted for some time.

Despite improved operating conditions, milk production growth has been affected by a smaller national herd, labour shortages and continued farm exits. Dairy Australia has revised its milk production forecast to a -1% to +1% change in the national milk pool this season.

Globally, the report describes how demand for dairy has continued to gain momentum as more countries emerge from lockdowns. This has seen commodity prices increase, with milkfat products, like butter and cream, in particular experiencing a resurgence over the past few months. In addition, commodity price increases have been supported by slowing milk supply growth.

In the latest episode of DairyPod, co-founder of Gippsland Jersey Sallie Jones talks to Dairy Australia’s John Droppert about Gippsland Jerseys approach to building value into dairy products admits the volatile market environment outlined in the latest March Situation and Outlook report.