Country News

Rural Bank offers dairy price forecast

By Geoff Adams

Rural Bank has forecast an average farm gate milk price for 2018-19 at about $6/kg milk solids, or more.

The average for last year was about $5.70 and the last two years the prices have been below the ten year average of $5.81, according to the Rural Bank figures.

In its latest Australian Dairy Annual Review, the forecast is for a positive season, but seasonal conditions in spring and summer will dictate farm profitability.

The key drivers for milk price are expected to be increasing demand for dairy products, low milk supply, improving global dairy prices and competition from processors.