Dairy prices are projected to remain elevated through 2025, according to a new report by Rabobank, a food and agribusiness banking specialist. The forecast anticipates steady production expansion and robust export demand will offset modest gains in global supply. Milk production across the “big seven dairy-export regions” – the EU, the US, New Zealand, Australia, Brazil, Argentina, and Uruguay – is expected to increase by 0.8 percent year-on-year for 2025, with similar growth anticipated in the first half of 2026.
Specifically for Australia, the report suggests that dairy farm margins are likely to improve due to increasing farmgate prices throughout 2025, coupled with strong commodity returns and a weaker currency. RaboResearch senior dairy analyst Michael Harvey noted that the outlook for milk production hinges significantly on rainfall and weather conditions, particularly heading into the seasonal spring peak and for the 2025/26 season overall. Current Australian dairy production shows a 0.4 percent increase compared to the previous year, indicating a positive, albeit modest, growth trajectory.
