The Commodity Milk Value is maintained using two different spot milk price series. The Australian CMV is based on estimated wholesale prices within the Australian domestic market, which draws on quotes provided by Dairy Australia for cheddar and butter, and import parity values for milk powders developed by us. The Oceania CMV is based on NZ spot export prices to reflect the value of milk based on the world market prices for commodities references quotes sourced from NZX. In each case, the milk value is derived using estimates of conversion costs and the Australian manufacturing product mix.


This compares average milk prices paid with the CMV values shown in the above chart. Milk prices paid are drawn from outputs from our milk pricing analysis. Prices paid are our estimate of the weighted average minimum prices paid under available milk price agreements in each region and can be varied in this chart by varying on farm size, regional location, milk solids and seasonality. These outputs are consistent with the farmgate milk price value tool used in the Milk Value Portal which is maintained by us.



This compares bulk cream values (obtained from commercial sources by Freshagenda) with the estimated cream equivalent values based on butter and AMF prices. The butterfat prices are sourced from Dairy Australia spot quotes, and GDT prices based on the weighted average of the shipped values from each auction event.


This compares skim milk concentrate values (SMP equivalent) derived from commercial sources with SMP quotes from the Australian domestic market and NZ export prices.


This compares an an indicative average Victorian minimum milk price paid in each of the months through June 2024, with the marginal milk value (that is without fully costing product manufacture) derived from toll-producing cheddar and SMP/butter.

The milk price paid is derived from our milk pricing models (as explained above) for the 2022/23 season. This then assumes a 7% decline in average prices paid in the 2023/24 season. This will be updated when we have undertaken our annual milk price outlook in May 2023. 


The compares the Australian CMV (as derived above) with milk values based on estimated fully costed product stream returns using Australian wholesale prices amd conversion costs for each of the SMP/butter, WMP and Cheddar streams. The projected product values used in these calculations are based on our projected fundamental values, developed in our Global Dairy Directions analysis.