DCANZ data shows August 2026 milk solids production rose 3.3% YOY. On a volume basis, milk output rose 2.2% YOY. The new season is off to a great start following record production in 2025-26. Milk volumes are seasonally increasing, with growth reflecting favourable pasture conditions and good feed availability.

     Farmgate margins remain profitable but under increased pressure from higher input costs. PKE imports fell in recent months as CIF prices rose sharply. Farmers are reportedly holding on to cows, but culling picked up since March.