The Australian Bureau of Agricultural and Resource Economics (ABARES) latest Agricultural Commodities Report forecasts the value of ag production will rise 7% YOY in 2024/25. Production value is estimated at a total of $88.4bn and if achieved, it will be the second highest on record. 

ABARES noted that while farmgate milk prices are forecast to fall 11% YOY to A$8.70kgMS in 2024/25 they remain 3% above the 10-year average to 2023/24 in real terms. Milk production is expected to decline 0.7% YOY to 8.317bn litres in 2024/25. Milk yields are forecast to rise 0.5% in 2024/25 as drier conditions increase fodder use, supporting yields with ABARES expecting milk production to decline in the second half of 2024/25 on strong year ago comparables.