1、Mid-year 2025Situation and OutlookGlobal supply Situation OutlookPeak northern hemisphere production has been weaker than anticipated;while there has been minor growth in the United States(US)milk flows,European production has lagged against last season.Additionally,weather conditions in New Zealand

2、 limit continued growth.Looking ahead,further recovery in US milk flows is likely,while European and NZ production may remain constrained.However,US tariff changes and foot and mouth disease in select parts of Europe may carry implications for trade flows.Australian market Situation OutlookThe total

3、 volume and value of dairy sold in retail across the four key categories are growing.Shoppers continue to look towards private label products,right size the packsizes they purchase and consume more in-home.While the latter weighs on the foodservice sector,it has supported the rise of social media as

4、 a source for new recipes,supporting retail sales of some dairy products.However,as shelf prices begin to ease,further value growth in retail may be limited and the pressures of imported products remain.Inputs Situation OutlookFeed and fertiliser prices have climbed,driven by mixed seasonal conditio

5、ns and tightening global supply,particularly for the fertiliser market.Water storage levels sit below last year,and temporary prices have risen from the lows of last season.Feed demand remains firm,both locally and internationally,while fertiliser markets are still dealing with supply challenges,sug

6、gesting these challenges will continue for some time yet.Australian production Situation OutlookChallenging weather conditions in several dairying regions and tighter farm margins,continue to pressure milk flows in the 2024/25 season.Australias milk production is on track to end this season at 8.3 b