Milk | Rural Bank Expects Milk Drop

Rural Bank expects milk production to decline marginally to 8.3bn litres in 2024/25 compared to the prior season.

According to the bank’s latest outlook, seasonal conditions have been positive in eastern states with good pasture growth and steady fodder costs. However, dry conditions in Tasmania, western Victoria and parts of South Australia mean production has been lower year-on-year in these regions. A relatively neutral rainfall outlook for spring means below average production is likely through the peak production period. Better conditions are expected in northern and eastern regions.

Processors so far keeping 2024/25 prices steady, at around 15% lower than the season prior, with limited upside. Margin pressures continue to be a concern for farmers, particularly in areas with drier conditions.

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