Australian milk production will fall to 8-8.2bn litres for 2022/23 according to the latest Dairy Insights report from Rural Bank. The Bank expects cost of living pressures are also weighing on consumer demand. Rural Bank points to recent lifts in global dairy prices on the GDT platform and continued processor competition for dwindling milk supply mean opening prices of around $9kgMS were not “out of the question”.

Meanwhile, Rural Bank’s cropping update says planting of the 2023/24 winter crop is well underway with growers taking advantage of good soil moisture conditions. Early planted crops have germinated well and are off to a good start, however limited rain over the past two weeks means topsoils have dried out in some areas with planting slowing. Export demand for Australian grain remains strong with ABS data showing wheat and canola exports are at record highs to the end of February.