Rabobank has lowered its milk production forecast for 2021/22 to 8.68bn litres, down 1.8% YOY due to significantly lower year-on-year peak production in October.

Rabobank senior dairy analyst Michael Harvey said season-to-date production is now down 2.9% on the season prior. Harvey said dairy companies in Australia’s southern export region were lifting their initial announced farmgate milk prices with potential for further increases as dairy exporters take advantage of higher commodity prices, particularly for SMP. Rabobank has maintained a farmgate milk price forecast of $7.75kgMS for 2021/22.