A series of workshops designed to provide transparency around milk-market dynamics are being rolled out nationwide.
Dairy Australia's industry insights and analysis manager John Droppert and Dairy Australia's agribusiness manager Tony Anderson discussed the value to farm businesses in understanding the factors impacting milk markets in a podcast titled 'Lifting the lid on market dynamics'.
Dairy Australia's first Milk Price Workshop was held on February 28 at Echuca, and eight more planned workshops across Victoria will follow.
The four-hour workshops are part of a three-year project that will see the workshops rolled out in every state.
"Things change quickly in the dairy industry, especially in milk markets," Mr Anderson said.
"The landscape is always changing.
"If you think things are still the same as they were five or 10 years ago, then I can tell you they're not."
Mr Anderson said a significant amount of market information was available to farmers to help them investigate and understand what's happening in dairy markets locally and globally.
"Ultimately, these market forces impact dairy farmers' farmgate milk prices," he said.
"Good, readily available market information helps farmers make informed judgements, and those decisions on where the milk price is heading help them make calls on how they will prepare themselves to take advantage of upswings or protect their margins if they think milk prices will be falling.
"If you understand how markets operate, ultimately, the market is significantly transparent and armed with that understanding, there's an opportunity to build trust in the market, its supply chains and market signals.
"When there's trust, I hope we can all sleep better at night."
The workshops allow dairy farmers to discuss milk markets face-to-face with industry experts.
Former United Dairy Farmers of Victoria president Adam Jenkins will facilitate the milk price workshops.
Mr Droppert will discuss domestic and global market drivers.
Janine Waller from the Dairy Products Federation will introduce their new website with up-to-date market information.
National Milk managing director and high energy presenter Scott Briggs will discuss the Australian Milk Price Initiative, launched in 2022.
Mr Anderson will speak about milk price history in Australia, including regulation, exports, deregulation and the Dairy Code of Conduct, among other topics.
A milk consultant in each dairy region across Victoria supports these learnings and dedicates their time to exploring milk payment structures that best suit a given farm.
"There's a myriad of milk payment structures that processors have on offer to our farmers," Mr Anderson said.
"And the best price isn't necessarily the highest price.
"The best price helps farmers maximise their profit margin with a level of risk that is acceptable to the farmer."
For more information about the Milk Price Workshops, visit dairyaustralia.com.au.
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