Rabobank: Milk prices to rise further

by | Sep 21, 2022 | Australia, Prices

Consumers can expect dairy prices to rise with fluid milk prices expected to rise as much as 20c – 30c per litre in the coming months according to Rabobank. Wet conditions, increased production costs and a decline in the number of dairy farmers are contributing to the rise according to Rabobank analyst Michael Harvey. Harvey said dairy companies are looking to pass through some of the high costs to consumers across all dairy products. While there are positive developments such as green pastures and full dams as a result of recent rainfall, the local dairy industry’s recovery is still hamperedby labour shortages which are likely to continue this season.

Advocacy body eastAUSmilk is hoping prices paid to dairy producers for their milk will continue to increase as the organisation says many farmers and their families have exited the industry in recent years. eastAUSmilk’s co-chief executive officer Shaughn Morgan hopes farmgate prices will increase even further to avoid further industry exits. He said Queensland milk production was 10.4% in June, resulting in a year to date decrease of 3.4%, adding should the trend continue there wouldn’t be an industry in the state within 10 years.