NEW dairy season farmgate bids are expected to open between $8.70 and $8.90, according to Bendigo Bank Agribusiness senior insights manager James Maxwell.
Hew said this week the opening farmgate price was expected on June 1 and new season bids could be pushed higher through the season.
“Southern production areas are still awaiting a season break as production continues to feel the effects of ongoing dry conditions,” Mr Maxwell says in his May update.
“Australian milk production in March was flat year-on-year which is an improvement on the trend of lower monthly production compared to the year prior which has been seen in the past three months.
“Milk supply in New South Wales continues to track higher than last year, and Tasmania recorded its first year-on-year increase for the season. Victorian production in March was flat with Eastern and Northern regions posting year-on-year increases of less than one per cent which came as a bit of a surprise given there hasn’t been an appreciable break to spreading dry conditions.
Season to date national production is 4.15 billion litres.