28 JUL 2023

Latest Dairy market update

line dairy cattle going in for milking

Global dairy prices recorded a fifth consecutive decline for Skim Milk Powder (SMP) and a third consecutive decline for Cheddar as world markets contend with extra northern hemisphere supply.


Hay prices eased again in July on the back of persistent rainfall across large parts of the country and subdued demand for feed. South East SA and the Darling Downs QLD recorded the largest decline in prices

Pasture hay $/t Current  Year ago 5 yr avgYoY (+/-)MOM (+/-)
South West VIC330205260125-1.8
Goulburn Valley VIC330198253132- 0.8
Gippsland VIC
280120227160- 2.0
Bega NSW33029337637- 0.5
South East SA32324527278- 9.3
Darling Downs Queensland32026839452- 5.5

Table showing the average price for pasture hay in key dairy regions. 

Source: The hay report is produced for Dairy Australia by the Australian Fodder Industry Association (AFIA) – the national independent voice for the Australian fodder industry which connects the entire supply chain from seed to feed. For further information: www.afia.org.au


Trent Smoker, General Manager, Clear Grain Exchange said Northern Australian feed demand pushed prices higher again in July.

Local feed grain prices have strengthened, particularly in the last week, with tensions boiling over in the Black Sea as Russia bombed and damaged Ukrainian port infrastructure used for grain exports.

Market analysts suggest that buyers are continuing to ship Western Australian feed grains into Brisbane to substitute short local supply, which is adding to the strong demand for grain in typically export focused states of WA and SA.

Read a full wrap on grain here.  

$/tonne Best published bids
Current 22/23Month agoYear agoMom +/-Yoy +/-
Fed1 WheatKwinana3452783306715
 Pt Adelaide356358292- 264
 Pt Kembla3773583091968

Table shows best published bids and actual traded grain prices from Clear Grain Exchange.



Elders Water Market Update shows new season temporary water prices:

Zone BuyersSellersLast Trade
NSW Murray 10 (Above Choke)$45$60$40
NSW Murray 11 (Above Choke)$105$110$100
Vic Murray 6 (Above Choke)$85$85$85
Vic Murray 7 (Above Choke)$110$120$110
SA Murray$110$115$105
Murrumbidgee Deep Aquifier Zone 1---
Murrumbidgee Deep Aquifier Zone 2---
Murrumbidgee Deep Aquifier Zone 3$20$20$20
Lower Murray Groundwater---
Lower Lachlan Groundwater---

Table showing the current temporary water prices for the respective zones.

Source: Elders Water Market Update

Export markets

Global Dairy Trade (GDT) reported large declines in price at the most recent auction event in July. Skim Milk Powder (SMP) prices declined by 6.1 percent (pc) compared to June, now hovering just above $2,500/t USD. Year on Year (YoY) SMP prices are now down 32.5 pc. Cheddar prices experienced an even greater fall in July, decreasing by 12.8 pc to $3,955/t USD, bringing the YoY decline to 18.9 pc. 

Export volumes for SMP were down 20.2 pc to the end of May compared to the prior year, however value was slightly higher up 0.5 pc. Cheddar export volumes were down 36.6 pc and value was down 20.7 pc. These figures are partially influenced by decreased milk supply and slower demand from world markets.  

Caption: Global dairy prices remain well down on year ago levels. Source: Global Dairy Trade

The information contained in this article is given for the purpose of providing general information only, and while Elders has exercised reasonable care, skill and diligence in its preparation, many factors (including environmental and seasonal) can impact its accuracy and currency. Accordingly, the information should not be relied upon under any circumstances and Elders assumes no liability for any loss consequently suffered. If you would like to speak to someone for tailored advice relating to any of the matters referred to in this article, please contact Elders.