costs remain high which is likely to affect milk output according to Dairy Australia (DA). Cereal hay prices are up 39% in northern Victoria and +34% in western Victoria. In Gippsland, pasture hay prices are 52% higher than May prices. Other input costs continue to rise, while grain prices are steady.

Bendigo Bank Agribusiness’ Victorian milk production forecast for the 2025/26 is 5bn litres,  3% lower than the prior year. The bank is unlikely to change its forecast as high input costs and tough seasonal conditions persist. National milk production is forecast at 8.2bn litres.