Dairy farmers can look ahead to one other sturdy 12 months however shoppers can be spared any additional value hikes, in line with the newest agricultural outlook from Rabobank.
The financial institution’s Australian Dairy Seasonal Outlook says producers can count on dairy costs to stay excessive however with enter costs easing, strain will come off shoppers.
The value of milk and cheese elevated by as much as 20 per cent up to now 12 months, however Rabobank doesn’t count on to see these value hikes repeated.
“We don’t expect to see another wave of price increases coming through on the dairy aisle,” Rabobank’s senior dairy analyst Michael Harvey stated.
“The retailers, they’re saying no more price increase requests are coming through, and there’s a need to sort of stabilise the food price environment for consumers,” he advised AAP.
Last 12 months the farmgate value of milk jumped to document ranges due to the excessive value of manufacturing and excessive international dairy costs.
The outlook discovered farmgate costs are more likely to stay excessive this 12 months, with predictions the brand new season milk costs in southern Australia will stay across the identical or at worst see a ten per cent decline for producers.
The new milk value can be set by June 1 and adopted on July 1.
“They (dairy producers) are going to get another good milk price which will ensure that they will make money and it’ll be a good season and that’s very much needed,” he stated.
It follows a tricky interval for dairy farmers who’ve battled low profitability, weather-related disruption and producers leaving the business.
“It’s a good milk price for farmers next season which will ensure profitability, but for consumers we don’t expect more price pressure,” Mr Harvey stated.
Source: www.perthnow.com.au
