Dairy farmer profits to hit record levels in 2025
The profitability of dairy farmers is likely to increase in the coming year, accordign to the latest report by the Ministry for Primary Industries (MPI) on the outlook for the primary sector.
European dairy co-op Arla Foods is boosting its dairy presence in Australia in a joint venture with Australia’s largest cheese importer, F. Mayer Imports.
Arla says the partnership will extend the success ‘down under’ of its specialty cheese brand Castello at a time when Australians are craving quality, culture and artisan cheese.
The joint venture, Arla Foods Mayer Australia Pty Ltd, will market, sell, and distribute imported and local products Castello cheese, Lurpak butter and other Arla products. It will also sell products from other producers in Europe and Australia via F. Mayer.
Arla Foods aims to raise annual revenue in Australia from its current $49m to $208m.
All Arla’s business in Australia will be through F. Mayer Imports, the country’s biggest importer of cheese products and Arla’s preferred distributor for 30 years.
The move is part of Arla’s worldwide efforts to enter new, attractive markets. The co-op is supplied by its 13,500 farmers in Northern Europe. Australia has 23 million consumers, many wanting specialty dairy products, Arla says.
“Although the overall Australian dairy market is seeing only low growth rates, the market for specialty cheese is lively and growing,” says Arla’s managing director in Australia, Lars Eggers, who will become the general manager of the joint venture.
“Australians want to be inspired by quality food, including artisan cheese…. A rich-food culture is clearly on the rise and we believe we have the products to tap into that movement.
“We hope to… [drive] the specialty cheese category [with] products that already inspire consumers in many other parts of the world. Castello cheese has been sold in Australia for 35 years and our partner, F. Mayer, has been sourcing specialty cheese from all the great cheese countries for decades, so we have a good foundation to build on.”
Six industry organisations, including DairyNZ and the Dairy Companies Association (DCANZ) have signed an agreement with the Ministry for Primary Industries (MPI) to prepare the country for a potential foot and mouth outbreak.
The 2026 Red Dairy Cow conference will be hosted by New Zealand in March.
While global dairy commodity prices continue to climb in most key exporting countries, the second half of the year is expected to bring increased downside risks.
In a surprise move, Federated Farmers meat and wool group has dumped its chair Toby Williams.
Former MP and Southland farmer Eric Roy has received the Outstanding Contribution to New Zealand’s Primary Industries Award.
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