For local dairy farmers, grain prices are always a critical concern, as the region’s farming systems rely on grain and grain by-products for between 25% and 50% of their feed.

Recent forecasts show a steep decline in grain and oilseed production—down 43% in South Australia and 35% in Victoria compared to the previous year—raising fears that grain prices would increase significantly, putting further pressure on already tight margins.

However, according to local consultant Dr. Neil Moss, “Even though we’ve had a poor crop in some states, other major grain-producing regions, particularly New South Wales and

Southern Queensland, are looking good. This will likely lead to lower grain prices and be beneficial to our farmers.”

This mixed outlook means that while South Australia and Victoria are facing significant production losses, farmers in regions with stronger crops may not feel the same financial strain. “We’re not overly concerned about grain prices at the moment,” Moss adds.

While uncertainty remains, especially with fluctuating weather conditions, the outlook for pasture conditions is promising in most dairying regions. “With the exception of the Bega Valley, where it’s very dry, we’re seeing good pasture conditions locally. ” says Moss. This, combined with favourable grain prices, offers an optimistic picture for local dairy farmers.

As farmers watch the markets closely, the ability to adapt remains key. Lower grain prices may provide much-needed relief, but long-term sustainability will depend on a variety of factors—access to land for long term leasing, milk production, prices, and climate conditions among them.

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