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Situation & Outlook Report

Dairy Australia is the Australian dairy industry’s go-to source for the latest international and domestic market trends, statistics and facts, providing expert analysis and unbiased insights. 

The latest Situation and Outlook report, published in May 2022, analyses the forces influencing the global dairy commodities market, and the effect they are expected to have on the profitability of Australian dairy farms in the coming season.

Early announcements of opening milk prices have set new records, backed by stiff competition for milk and robust global markets. Meanwhile fertiliser, fuel and grain prices are on the up amid the reality of a war in Europe, renewed geopolitical tensions and ongoing disruptions associated with COVID-19.

After successive seasons of recovering profitability, the net effect of these rapid and substantial changes on margins is a key question as farmers and processors try to plan ahead in a volatile market.

Ongoing growth limitations and heightened margin risk are expected to offset strong milk prices and favourable seasonal conditions, resulting in a comparatively flat milk pool totalling 8.6 billion litres. 

Domestic consumption volume has shifted from grocery to foodservice as the effects of the pandemic recede and more consumers are out and about. Meanwhile, the value of dairy products sold through supermarkets has increased. 

  • Situation and Outlook May 2022

    PDF5.94 MB

Industry confidence

The 2022 National Dairy Farmer Survey (NDFS) has reported that 68% of farmers feel positive about the future of the industry (up by 4% on 2021), while 82% are confident about the future of their own businesses (up by 2% on 2021). Profitability has continued to improve, with 88% of survey respondents reporting an operating profit in 2020/21, and 90% expecting to do so in 2021/22.

Previous Reports

Access previous Situation and Outlook reports from our Resource Hub.

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