Dairy commodity prices have continued to decline in recent months. Economists at ANZ Bank now forecast a farmgate milk price of $7.75/kg milksolid (MS) for the 2023-24 season.

Milk price forecast drops sharply

We have revised down our farmgate milk price forecast for the 2023-24 season by 50c to $7.75/kg milksolid.

Our forecast for 2022-23 remains at $8.20/kg milksolid.

Global demand for dairy products has been impacted by deteriorating economic conditions affecting consumer demand, particularly in China.

The relatively weak NZD remains supportive of the farmgate milk price but is not sufficient to offset the impact of lower returns for dairy commodities.