increase font size
Australian milk production could rise at least 2% this year, according to the latest forecast.
Australia's dairy industry is on track for a slight increase in milk production this season.
According to Dairy Australia's latest Situation and Outlook Report, conditions on farm remain relatively favourable.
Australia's current production forecast suggests rise of up to 2%, which would equate to a national milk pool of 8.8 to 9 billion litres.
Dairy Australia senior industry analyst Sofia Omstedt says strong farmgate milk prices have subdued input costs have allowed most farmers to focus their attention on calving and the spring flush.
A wet start to the season slowed milk flows in July, however, drier weather has since helped to improve milk production conditions heading into spring.
After a spike in sales last year, sparked by panic buying as lockdowns took place across the country, shoppers have reverted to pre-Covid trends, with sales of fresh and long-life milk tracking well in line with 2019.
"The vast majority of Australian households regularly purchase milk at 98% and only 2% of buyers exclusively turn to dairy alternatives, so dairy demand continues to be strong," says Omstedt.
"Plant-based beverages remain complementary to, rather than a substitute for, milk."
Meanwhile, global dairy demand has been put to the test as the Covid-19 delta variant spreads across the world.
While a mid-year market lull is common, this year's was exacerbated by new lockdown implemented in key regions, for example in parts of southeast Asia and some provinces in China.
Omsedt says this saw commodity values for most dairy products and trend downwards, however, this price slide now seems to be stabilising.
As dairy demand moves back into growth phase, freight challenges are becoming increasingly prominent as shipping congestion worsens. With new lockdowns and temporary terminal closures, this is projected to remain a challenge for anyone exporting (or importing) products for the foreseeable future.
Omstedt notes that with global supply expected to continue its current growth trajectory, solid ongoing demand will be of paramount importance.
"To date, underlying global demand has proved sufficiently strong and adaptable.
"Nevertheless, rising Covid-19 cases demonstrate that even agile supply chains and strong fundamentals cannot completely offset the impact from consumers facing a new period of prolonged restrictions.
"While Australia's dairy farmers look set to benefit from a wet spring and ongoing profitability this season, the industry more broadly will be keeping an eye out for more curveballs as the pandemic continues to unfold."
OPINION: Welcome to the second annual NZ Dairy Expo at Matamata – an event created to bring together the best of the New Zealand dairy industry in a focused, grassroots environment where dairy farmers and rural professionals can meet, talk, compare products, and make smart decisions for their farms.
It's a bloody tough year for sheep farmers, but the worst may be over, and the future looks optimistic.
One of the country’s two largest supermarket chains is reporting that for the first time since the disruption of Covid, they have largely full supply on almost all fruit and vegetables grown locally.
Covid-19 took global shipping rates to mind boggling highs, but over the subsequent 12-15 months they returned to more sustainable levels. Fast forward to July 2024 and rates have nearly doubled over three months.
Horticulture New Zealand (HortNZ) chief executive Nadine Tunley says the industry-good body’s support for growers has proven to be multifaceted.
New Zealand's largest celebration of rural sports athletes and enthusiasts – New Zealand Rural Games - is back for its 10th edition, kicking off in Palmerston North from Thursday, March 6th to Sunday, March 9th, 2025.
Southland breeder Tim Gow attributes the success of his Shire breed of hair sheep to the expert guidance of his uncle, the late Dr Scott Dolling, who was a prominent Australian animal geneticist.
Progeny testing at Pāmu’s Kepler farm in Southland as part of Beef + Lamb New Zealand’s Informing New Zealand Beef programme is showing that the benefits of hybrid vigour could have a massive impact on the future of beef breeding.
Vegetable grower NZ Hothouse Ltd has always been ahead of the game when it comes to sustainability, but new innovations are coming thick and fast.
OPINION: Submissions on the Government's contentious Gene Technology Bill have closed.
Alliance Group has secured greater access for chilled beef exports into China following approval of its Levin and Mataura plants to supply that market. With its first load of beef from Levin clearing Chinese customs in early January and a shipment from Mataura recently arriving in China, journalist Leo Argent talked to Alliance general manager safety and processing Wayne Shaw.
OPINION: Australian dairy is bracing for the retirement of an iconic dairy brand.
OPINION: Another sign that the plant-based dairy fallacy is unravelling and that nothing beats dairy-based products.
