Better than expected weather conditions and a supply-led rebound in commodity values have fed current optimism, lifting current season milk production 1% against flood-affected comparables.      Reduced on-farm debt has reduced exposures to high interest rates, while input costs have mostly eased according to Dairy Australia’s (DA) March Situation & Outlook report.

Meanwhile, the Australian market has grown for cheese, spreads and yogurt, while drinking milk sales fell 1.6% YOY. Household penetration rates for dairy products have eased slightly, reflecting  cost-of-living pressures but remain high. Sales value is up for all major categories, between 6.4% for milk and 13.4% for cheese for the 12 months to 28 January.