Dairy Australia’s Production Input Monitor shows water and fertiliser prices remain elevated, while feed costs are easing.

Despite recent rainfall in July, August was dry across Victoria, Tasmania and South Australia. Water storages filled but remain well below 2024 with temporary water prices still high. In Northern Victoria, August prices rose from the month before and are 118% higher YOY while Murray Irrigation prices dipped from the prior month but remain 122% ahead of the prior year.

Hay prices eased due to better seasonal outlooks and buyers delaying purchases for new-season hay. Wheat prices declined on improved harvest forecasts, although yields are still expected to trail last year. DAP and urea prices increased, reflecting tight global supply and reduced Chinese exports.