2022-23 milk price data now available on the Milk Value Portal

Milk price data and Milk Supply Agreements (MSAs) and their contract features for the new 2022-23 season (up to 13 June) are now available on the Milk Value Portal (MVP), providing current and historical data on the value of raw milk across Australia and new insights into where opening farmgate milk prices are landing.

This recent activity – marking the first major update since the 2021/22 pricing data was released – provides farmers with even greater transparency and understanding on the value of raw milk being paid by dairy processors to farmers.

In collaboration with dairy industry analyst Freshagenda, what we’re seeing is:

• These are without doubt the highest milk prices in terms of the announced expected average milk prices that will be paid in the major Southern regions this season, with a weighted average expected price of $8.96/kgMS.
• That average will likely push past $9/kgMS with further revisions expected in the next two weeks as companies respond to this competitive farmgate environment given the strong dairy product prices and the ongoing weakness in Southern milk supply.
• The MVP Farmgate Milk Value Tool now contains 2022/23 milk pricing data up to 13 June. It enables a user to see the weighted average minimum price available for specific farm situations based on location, size, seasonality, and milk solids, for the season and that quarter in cents/litre or dollars/kg milk solids.
• This year, there has been a 21-23% lift in weighted average values across Southern regions, central NSW, and WA from the 2021/22 season, but a larger lift is evident of around 30% in Northern NSW and South Queensland where milk supplies have been under greater stress due to flooding.
• Due to the complexity of contracts, it is important for farmers to fully understand the terms and conditions and what each potential arrangement can offer to their business, including the customised incentives and options offered, such as for volumes and/or farm locations.

The MVP is a well-established, credible source of primary information that, particularly in the month of June, helps foster better decision making by providing farmers with insights on milk price and how milk is valued in each 12-month production season.

The reduced availability of domestic milk supply and the increased costs of raw materials is putting immense pressure on processors, which is confounded further by the difficulty to pass through full cost increases along the supply chain.

Through this, processors remain steadfast in their commitment to provide farmers with greater transparency and understanding on the value of raw milk across Australia, aligned with Commitment 5 of the Australian Dairy Plan.

The ease and accessibility of new information on the MVP, in arguably the most important month of the year, provides farmers with clear price indicators and greater certainty around the upcoming milk price season.

Farmers and farm advisors are encouraged to use the MVP to help navigate their way through contract conditions, offered farmgate milk prices, and the market factors driving them.

To access the links and summary overview to the current MSAs being offered across Australia in the 2022/23 production season, visit here.

Register to receive updates from the Milk Value Portal here.

ENDS