Domestic Market Updates
Track Australian dairy market updates for some of the latest developments in production, trade and retail sales.
May Consumer Mood Boost
The Westpac-Melbourne Institute consumer sentiment index rose 2.2% in May to 92.1. While the index is 12% higher YOY, a reading below 100 indicates pessimists still outnumber optimists. All but one of the five subindices improved from April to May, but still sit...
Mixed Conditions For Crops
Seeding is underway but confidence is mixed according to Bendigo Bank’s Cropping Update. Queensland, northern NSW and southern WA are tracking well with good soil moisture and strong sowing progress. In contrast, SA is critically dry and confidence is slipping on the...
Dry Drives Sharp Drop in Cattle Prices
Young cattle prices are dropping as producers in drought-hit areas offload cattle rather than feed through winter. Most cattle market categories have reported sharp declines in prices. Agents anticipate the flood of supplies in the south will continue for at least...
Suitors Line Up For Fonterra Assets
Lactalis, Canadian Saputo, Japanese Meiji Holdings Co and a US-based investment firm are just some of the companies reportedly interested in buying Fonterra’s consumer-facing assets. According to Reuters, Lactalis launched an application for “informal merger...
Bega Lifts Milk Price
Bega has raised its 2024/25 farmgate milk price by 10c per kgMS to a range of $8.15kgMS to $8.45kgMS for suppliers in Victoria, NSW and South Australia. Strength in Bega’s international commodity business supported the step despite a weak domestic trading environment,...
Saputo Steps Up
Saputo has announced a 15c per kgMS increase to prices for its exclusive southern region suppliers. The increase takes the weighted average price to a range of $8.30 to $8.45kg MS. The payment will be made this month with April proceeds, and applies to all eligible...
Less Rain, Warmer Days Ahead
Typical rainfall and warmer temperatures.are forecast for May to July. The Bureau of Meteorology expects May rainfall to be below average across most of the country—except for the east coast where average rainfall is expected. Warmer than average sea surface...
March Milk Production Flat
Milk production was flat year-on-year in March, with season-to-date production trailing 0.1% YOY according to Dairy Australia. Drought and dry conditions continue to impact production Victoria and South Australia. Production in Victoria declined 0.5% YOY for the...
Bega Out Of Mainland Hunt
Bega has reportedly been disinvited from the sale process for Fonterra’s Mainland Group. Fonterra has a long-term contract to distribute and manufacture the Bega Cheese brand. Bega argues any spin off of Mainland Group will trigger a clause to renegotiate or cancel...
Brownes For Sale
WA-based Brownes Dairy is up for sale after its biggest lender Chinese Mengniu Dairy called in its $200m loan. McGrathNicol, appointed by Mengniu to find a buyer for Brownes’ holding company does not anticipate any changes in day-to-day activities. Brownes is a market...