Freshagenda has released a Southern Australia milk price outlook for the coming season.

The full season milk price paid to southern producers is expected to average $8.50kgMS in 2023/24 based on projected commodity prices, average manufacturing conversion costs and the industry product mix. The $A is expected to average US$0.70. There is likely to be significant variation dependent on product mix across milk buyers. Despite easing milk price farm margins will be helped by falling feed and fertiliser costs.

Australian milk production is forecast to fall 3 to 5% in 2023/24 to between 7.6 and 7.8bn litres as El Nino conditions develop. With domestic product prices above international benchmarks, imports of butterfat and cheese are expected to increase.