Australia’s dairy sector is suffering from a production shortage, which might lead to higher milk prices.
Wet weather, growing production costs, labour problems, and farmer migration are blamed for price increases.
Rabobank’s Senior Analyst of Dairy and Consumer Foods Michael Harvey said Australia’s output declined by 350 million litres.
Recent rains have given better fields and full dams to agricultural areas, says Rabobank’s Michael Harvey.
Flooding in Queensland and NSW caused milk losses, while seasonal circumstances were unfavourable in Tasmania and Victoria, he added.
This affects feed quality and availability.
Mr. Harvey said labour shortages and farm departures hurt the sector.
‘That’s why output is falling,’ he remarked.
I expect rising food costs, including higher dairy prices across most categories.
High-price drivers are still in play. High expenses of manufacturing, packaging, and delivery.
Production concerns are predicted to raise the prices of butter, cheese, and yoghurt.
Mr. Harvey said prices are rising across all categories and regions.
Rabobank’s Senior Analyst of Dairy and Consumer Foods Michael Harvey said Daily Mail Australia’s output is down 350 million litres.
Milk and cheese prices are rising globally.
Australian dairy farms face labour shortages. Some senior farm owners desire to quit for lifestyle reasons.
And cattle compete for resources and money.
Shaughn Morgan of eastAUSmilk said dairy farmers were under a lot of pressure and had no option.
Many dairy farmers and their families are giving up, he added.
Bianca Woodford operates a dairy west of Brisbane and raised prices to compensate for expenses.
She believed buyers would comprehend price hikes.
‘We keep raising prices to support our company,’ she told ABC News.
Australia’s cost of living crisis has forced households to pay exorbitant prices for groceries, petrol, and electricity.
Australia’s cost of living issue has caused consumers to pay more for food, fuel, and power, and now milk.
According to the Australian Bureau of Statistics’ July report, the price of vegetables, fruit, morning cereals, bread, eggs, oils, butter, and margarines has risen considerably in the previous year.
Vegetable prices rose 7.3% nationally and considerably more in certain cities.
Darwin’s vegetable costs rose 9%, while Sydney and Melbourne’s rose 7.7%.
Fruit and vegetables rose 7.3% from June 2021 to June 2022.
Coffee, tea, juice, and soft drinks rose 7.9%.
Dairy farmer advocate Shaughn Morgan from eastAUSmilk stated employees had no option.
