The all-milk price declined in March, according to USDA’s latest Ag Prices report. The all-milk price of US$0.48/l was down 2.3% from the prior month and 17.6% lower in YOY terms.

Average MPP farmgate margins fell by 3.7% between February and March to $14.8/cwt – a 19-month low. It reflects lower a 2.5% fall in Class IV prices in addition to a 0.4% hike in alfalfa hay prices. We expect margins to remain very low in the first half of 2023 before a recovery from the third quarter to reach above $US18/cwt by September.