An update to the Australian Dairy Products Federation’s (ADPF) Milk Value Portal will help farmers and others better understand milk prices
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The updates to the Milk Value Portal will help dairy farmers better understand milk prices being paid by dairy processors
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The portal now shows milk price data for the 2021-2022 season, in its first major update since its launch last November.
Aimed at providing farmers with more in-depth information about the calculations of milk prices and the value of milk in their respective regions, it is hoped the portal will increase transparency between farmers and the processors in the dairy sector.
Following the latest update to the portal, farmers can now view new insights into where farmgate milk prices have landed relative to Commodity Milk Value (CMV), an Australian dollar-based value which indicates estimated milk prices calculated based on a weighted basket of commodities.
The CMV took a steep decline in June 2020 following an appreciating Australian dollar which drove southern regional opening prices to be slightly less than the yearly average.
One year on however, the CMV is far more stable with elevated prices reflected in the southern region’s opening prices which exceed more than $1/kg milk solids above the CMV.
The portal also providers farmers with new insights into milk values throughout the country’s eight milk production regions and highlights competitiveness in the market, as well as ongoing premiums available.
Data such as farm size and seasonality remain imperative as larger farms with a less seasonal production curve attract significant premiums.
ADPF president Grant Crothers says the milk value portal will be beneficial for both farmers and others who wish to view the data and insights on offer.
“The new data on the Milk Value Portal allows visitors to see current and historical changes, now featuring three years’ worth of data and gives farmers a more in-depth understanding of what factors impact the price of raw milk,” Crothers says.
“Another year of high milk prices being offered by processors to dairy farmers is good news for agriculture and great news for dairy. It appears we are in a super cycle – a third year of what is likely to deliver record prices for raw milk.
“Demand from the processing sector for raw milk continues to be strong, enhancing prices and providing advantages to dairy farmers. In addition, the recent softening of the Australian dollar is good news for FMP supporting processors decision to ‘go hard’ at opening.
“Initiatives like the Milk Value Portal are helping increase transparency between farmers and processors and it is creating a more united dairy industry, restoring trust and industry confidence.”