Dairy production headed to 20-year low
12 April 2017
The Australian Dairy Farmer BRIAN ROBINS10 Apr, 2017
Australia’s dairy production is headed for 20-year lows as the slump in milk prices has prompted farmers to either quit the industry or slash output by cutting the size of their herds.
And with farmgate prices tipped to rise only slightly over the balance of the year from present levels, as global prices for most of the main export products are likely to remain under pressure, a quick recovery is not on the cards.
“It is a bit of a grind,” said Steve Spencer of FreshAgenda, the specialty dairy advisory operator.
Rabobank has forecast Australia’s dairy output to decline as much as 7 per cent to less than 8.9 billion litres for 2016/17 which, if correct, will see output drop to 20-year lows.
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