Rising milk prices are not being matched by increased production in Australia.
Dairy Australia’s latest situation and outlook update reveals prices paid to farmers have increased as much as 25 per cent in southern exporting regions, while prices are up about 5 per cent elsewhere.

About nine billion litres of milk are forecast to be produced this financial year, slightly down on the previous 12 months.

Dairy Australia’s commercial and research analysis manager, Norman Repacholi, says milk production is likely to increase once farmer confidence improves.

“I think the debt that farmers incurred in terms of making through that season, it’s now been digested effectively,” he said.

“I think once some of that improved price has gone into reducing the debt then we are going to be in a much better position for more sustainable growth.”
Source: ABC Rural