Dairy Situation and Outlook December 2022 report

The Dairy Situation and Outlook December 2022 report has been released by Dairy Australia.

It shows that globally whilst milk supply has grown in the northern hemisphere placing downward pressure on commodity prices, in Australia volumes are well below levels of the previous year.

The forecast for milk production for the remainder of the financial year 2022-23 will almost certainly be revised down as a result of the floods in Australia’s eastern states and finish the season below the previously forecast 0% growth relative to 2021/22.

For the year to 9 October 2022, sales of fresh milk and yoghurt continued to grow by 0.3% and 0.9% respectively. Sales of butter and cheese decreased by 1.2% and 2.3% respectively.

Milk processors’ margins will continue to be tested by the combined effects of these challenging recent seasonal conditions, rising costs, ongoing labour issues, and higher interest rates and cost of living pressures.

For further insights, please access the report: RG09qx