ANZ’s Autumn Commodity InFocus report says Australia’s dairy sector remains structurally supply constrained, with milk production forecast to slip from about 8.3 billion litres to just over 8.1 billion and the milking herd to fall around 2% to roughly 1.29 million cows. Despite lower volumes, ANZ expects dairy gross value of production to rise from about $5.4 billion in 2024/25 to $5.9 billion in 2025/26, supported by higher prices and improving yield per cow. The bank highlighted growing adoption of productivity-focused innovation, including virtual fencing collars, as farmers seek efficiency gains in a tighter supply environment.
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