The 2022/23 season is opening with large numbers on both sides of the ledger. Early announcements of opening prices have set new records, while fertiliser, fuel and grain prices have soared amid the reality of a war in Europe, renewed geopolitical tensions, and ongoing disruptions associated with COVID-19. After successive seasons of recovering profitability, these sudden and substantial pressures on margins - and the degree to which the milk price will help offset their impact - is a key question as farmers and processors try to plan ahead in a volatile market. The 2022 National Dairy Farmer Survey has reported that farmer confidence is high; however, this and profitable margins are not translating to milk-supply growth. Australia looks set to conclude the 2021/22 season with a national milk pool of around 3.5 below the 2020/21 total, at just under 8.57 billion litres.
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