Australian consumers have seen significant price increases during the cost of living crisis, with milk prices having risen at the fastest rate since records began in the 2021/2022 season.

The rising milk prices are set to hit Australian families wallets who are already struggling with other surging product prices.

Michael Harvey, Senior analyst for Dairy and Consumer Foods, Rabobank told Perth Live host Oliver Peterson that the significant price hikes are due to global markets and high cost of production.

Press PLAY to hear what you can expect for next years milk market

“On farm it’s the cost of feed, fertiliser and fuel, but even other challenges are lingering around like labour availability, interest rates are rising but again it extends beyond the farm gates too,” he told Oly.

“Unfortunately for customers it means they are paying a lot more but for the supply chain of dairy, it’s really about margin restoration.”

The unfavourable weather, particularly over east with excessive rain and flooding, is also to blame for the decrease of milk production.