Australian Dairy Price index review

The government has implemented a dairy price index which is supposed to help dairy farmers and industry associates to make decisions about their business.

The index collects information from some farmers AND monitors export prices for the main commodities.   The information does not describe the volumes of milk used for the products, or anything that is meaningful to dairy farmers – especially those that are NOT in Tasmania or Victoria – which is where the majority of cheese and milk powders are made.

There are similar dashboards and indexes in the USA and Europe.

I have detailed the information that I believe would be helpful in this document

This includes

  • Volumes of milk needed to make the dairy products CONSUMED in Australia,
  • The volume / weight of dairy products imported into Australia.
  • The cost of feed for cattle compared to the price of milk. In the USA, this is called the Feed: Milk Price Ratio.  There may be local variations in Australia as each region is different AND the production curve is different in each region – REMEMBER FLAT PRODUCTION CURVES ARE MORE EXPENSIVE THAN SEASONAL PRODUCTION!!!

With luck, the index will be able to add value to the dairy industry as a whole.

Australian dairy industry index

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