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August's Dairy market update

11 August 2025

Highlights for dairy

  • The average southern farmgate milk price of major processors for 2025/26 is around $9.10/Kg MS…. at least publicly. Slow take-up from producers and better offers from smaller processors meant larger buyers had to scramble to secure supply with reports they have made private offers to hold-outs in excess of $10/Kg MS. The upside of this is competition to secure supply remains and there is potential value for those that are in a position to challenge convention.
  • The race is heating up to secure Fonterra’s Australian food and consumer business and assets. The ACCC has approved Lactalis’ bid, but Bega have proposed a joint bid with Dutch multinational FrieslandCampina NV (FC). Along with Japanese company Meiji Holdings Co, this makes three applicants, though the ACCC is still in the process of reviewing the joint Bega/FC bid.
A table showing global dairy prices for butter, cheddar, skim milk powder and whole milk powder in Australian dollars per tonne. Prices across most key dairy sectors have broadly eased in recent months.
Source: Global Dairy Trade

James Maxwell

Senior Insights Manager

Jimmy is our Insights specialist for dairy which sits well with him due to his love of milk and cheese. His background is in cropping, having worked in the grains industry for over 15 years.

 

Bendigo Bank Agribusiness Insights publication(s) are for information purposes only and contain unsolicited general information, without regard to any individual objectives, financial situation or needs. Please refer to the terms and conditions.

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