Dairy

Rural Bank’s Australian Agriculture Mid-Year Outlook 2023 report finds that favourable seasonal conditions and strong production over the first half of 2023 ensured strong winter crop establishment and pasture growth, particularly on the east coast, but despite a positive start to the year, softening commodity prices are now impacting Australian farmers following several seasons of strong prices.

Signs of weakening demand for dairy are spreading across markets. According to a new report from Rabobank, the cumulative effects of high food price inflation over the past 24 months, along with slowing economic activity in 2023, have translated into lower dairy demand in developed and emerging markets.

Australian farmer confidence has improved marginally thanks to easing concerns about commodity prices and input costs, however it remains in negative territory overall. The latest quarterly Rabobank Rural Confidence Survey, released on 13 June 2023, saw confidence lift nationally from -25 per cent in the first quarter of 2023 (the lowest level since late 2018) to now sit at -22 per cent.

Not every child gets a Christmas present of money to buy a steer. The Gould kids did. Harper, 12, Allora, 11, Slater, 9, and Ledger, 7, bought steers and named them Big Boy Steve, Fuzz, Parker and Max ... Adam said being on the farm is good for the kids because they have to take responsibility. They get out here at 3am to milk the cows and by 6am they’re ready to go, he said.

Rural Bank Insights provides a monthly commentary on production and pricing trends for Australian agriculture, providing producers with a timely overview of current trends and an outlook for the coming months ... Cattle, cropping, dairy, horticulture, sheep, wool.  

Australian dairy producers can look forward to another favourable season in 2023/24, with the sector set for its fourth consecutive profitable year, Rabobank says in its recently-released annual Australian Dairy Seasonal Outlook.

Australian agricultural commodity prices took another downward turn last month with the NAB Rural Commodities Index* now 19.7 per cent below year-ago levels. Lower beef, lamb, canola, dairy and wool prices saw the Index fall 3.6 per cent month-on-month, according to the bank’s April Rural Commodities Wrap released on 26 April 2023.

Australian farmers continue to ride the rollercoaster of seasons, commodity prices and economic factors, with rural sentiment at the start of 2023 dipping to its lowest level reported since late 2018. The latest quarterly Rabobank Rural Confidence Survey, released on 16 March 2023, found after rallying late last year, sentiment in the rural sector had fallen again this quarter as farmers continue to navigate a range of economic and financial uncertainties.

The latest ABARES Snapshot of Australian agriculture shows the industry continues to grow and perform strongly in a number of key areas including exports, incomes and risk management. Industry production and export values are forecast to hit record levels in 2022-23, with broadacre and dairy farm cash incomes remaining well above historical benchmarks.

According to a new report from Rabobank, participants all along the dairy value chain are being squeezed. Producers’ milk prices have tumbled from 2022’s lofty levels while feed prices are at record highs.

Farm cash income for all broadacre farms is projected to decrease nationally by around 7 per cent to average $327,000 per farm in 2022–23 but remain 46% above the 10-year average ... “However, farm incomes are projected to fall slightly in 2022–23 because of lower prices for most commodities and input costs remaining high after significant increases in 2021–22": Head of Farm Performance at ABARES, Peter Gooday.

The liquid ‘drinking’ milk market remains of key importance to Australia’s dairy sector – with improved domestic retail pricing and opportunities for further export growth – Rabobank says in a newly-released industry report.

The Tasmania Farmers and Graziers Association (TFGA) supports the Australia-European Union (EU) Free Trade Agreement in principle ... However, the TFGA is concerned about recent demands from the EU to implement a Geographical Indications (GI’s) regime requiring Australian dairy producers to stop using traditional names such as Brie, Parmesan, and Cheddar.

Australian consumers are seeing significant price increases across dairy products – based on the national Consumer Price Index (CPI) data – with milk prices having risen at the fastest rate since records began, according to a new report by agribusiness banking specialist Rabobank. In its Global Dairy Quarterly Q4 2022 – Walking the Tightrope into 2023, Rabobank says while the Australian consumer has shown resilience in the face of cost-of-living pressures, signs of dairy demand weakness are emerging as a willingness and ability to spend on discretionary items softens.

Kirstin Nicholson. Mick Farrant’s dairy farm is on Flannery’s Road, McMillans and two thirds of his 1,100-acre property is underwater. Excess water from Pyramid and Bullock Creeks has inundated the farm. “It’s a big job moving cattle, it’s just a massive undertaking to shift a whole herd and get set up for them somewhere else. You don’t do that in five minutes,” he said.

Kirstin Nicholson. Pat and Michelle Quinn’s dairy farm at Mincha West is under real threat of flooding. The 700 head dairy property sits about 3km from Flannery’s flume, and the water coming out of Kow Swamp backs up and flows over the top of the property ... In 2011, the farm was completely inundated – and Pat is predicting this flood will be the same.

The deindustrialisation of milk production in Ukraine could prove to be a miraculous renaissance of the industry ... The cow becomes a source of hope and prosperity in an era of instability. This allows us to hope that, at least in private households, the production of dairy products will begin to increase.

Shadow Minister for Northern Australia, Senator Susan McDonald has warned the Federal Government to cut the “bull” and not the national cattle herd ahead of signing up to an international methane reduction agreement ... Senator McDonald warned that any move against cattle and sheep herds would be met with fierce resistance, especially from Northern Australia’s $1.35 billion live cattle export sector which supplies much-needed beef to South East Asian countries ... Senator McDonald said attacks on methane emissions ignored the contributions made by herbivorous and ruminant feral animals.

The Victorian Farmers Federation’s United Dairy Farmers of Victoria (VFF UDV) says Northern Victoria’s dairy industry would be further damaged by water buybacks and the recovery of the 450GL up-water target ahead of this week’s meeting of State and Federal Water Ministers to discuss the Murray Darling Basin Plan. VFF UDV President Mark Billing said the group strongly opposed the recovery of the 450GL saying it would lead to losses in dairy production and local jobs.

Finally, the announcement many workers in Lismore were hoping for – Norco will rebuild its ice cream factory in South Lismore although it will be smaller. The factory was left wrecked and non-operational after the February 28 floods.