SOUTH-WEST Victoria saw a seven per cent increase in the price of shedded cereal hay inputs and a 32 per cent increase in the price of stockfeed wheat inputs from July 2021 to July 2022, according to data from Dairy Australia’s Situation and Outlook quarterly report.

The report released on Tuesday highlighted the latest information about international and domestic market trends, statistics, and facts while also providing expert analysis and insight on the market.

The south-west region saw price estimates of $204 per tonne for shedded cereal hay inputs in July 2022, while the estimated prices for stockfeed wheat inputs in the same period were even higher at $421 per tonne, exceeding the five-year average of around $350 per tonne.

The report also indicated the season gaining momentum, with national milk production likely to remain stable and farmgate prices remaining high.

Overall, Australia’s milk production for the 2021-22 season was down by around 3.5 per cent compared with the previous year.

Concerns regarding high input costs and crippling staff challenges have continued into the new season with other states such as Queensland and New South Wales experiencing unseasonably wet conditions.

The report reflected the inflationary pressures faced by retail prices with the take home volume of cheese declining by 1.8 per cent as at June 19, 2022, to be 163 kilotone, and the take home volume of yellow spreads declining by 0.1 per cent to be $95kt.

Both products experienced an increase in their take home value at June 19, 2022, with cheese experiencing a year on year increase of 1.9 per cent, and yellow spreads experiencing a year on year increase of 4.7 per cent.

The report highlighted more positive trends for milk and yoghurts with retail sales of both products remaining high to record a take home volume of 1,436m.L and 179kt respectively, as well as an increase in take home value of $2.478 billion and $1.212 billion respectively.

The report detailed how the increased cost of living and consumers turning to private label products, as well as falling commodity prices, are impacting the price of dairy products.

“Demand for dairy will be continuous (albeit in waves) and with limited product availability likely to be a feature of this season too, a battle for the right price will need to be had,” the report read.