Positivity from Gippsland dairyfarmers

A strong autumn break and improved milk production levels have boosted the confidence of Gippsland dairy farmers who have indicated a positive attitude towards their dairy businesses.

The national dairy farmer survey has shown 76 per cent of Gippsland dairy farmers are positive about the future of their own farm business.

But, only 40 per cent are confident in the future of the industry.

The survey, conducted in February, indicated profitability across the Gippsland region was expected to be significantly more widespread in 2019-20 than the previous year (80 per cent compared to 66 per cent), despite ongoing challenges with input costs.

Over the past 12 months, herd sizes have remained static on 56 per cent of farms but almost one third (29 per cent) have increased numbers.

The number of Gippsland farmers reporting they were in a “steady – where I want to be position” was 40 per cent, significantly up from 26 per cent the previous year.

Dairy Australia’s latest Situation and Outlook report indicated one of the best autumn breaks of recent times had supported a significant recovery in national milk production and boosted dairy farmer confidence.

After a challenging start to the season, national milk production has increased yearon-year for the past five months to April, leading Dairy Australia to moderate its milk production outlook for 2019–20 upwards to a drop of one to three per cent on last year to between 8.5 and 8.7 billion litres in total.

While COVID-19 has negatively impacted global demand and commodity pricing due to markedly reduced activity in food service channels, Australian retail demand rose as consumers stocked up on dairy products.

Long life milk sales surged 76 per cent at the outset of the virus and fresh milk, yellow spreads, cheese and yoghurt sales volumes remain elevated.

Dairy Australia senior industry analyst Sofia Omstedt said with more manageable input costs, generally favourable seasonal conditions and relatively strong farmgate milk prices this season, overall industry confidence had improved.

Ms Omstedt said the initial spike in retail sales due to COVID-19 indicates strong underlying demand for dairy.

However, she said, Australia was not immune to the growing headwinds facing global markets.

Favourable weather conditions have supported improved farmer sentiment.

The national survey showed 44 per cent of farmers across the country were positive about the industry’s future, up 10 per cent from last year.

More farmers are feeling confident about their businesses, see

production increasing and expect higher profits.

Seventy per cent of farmers recorded in this year’s survey expected to make a profit, up from 43 per cent last year, while 48 per cent of farms anticipated an increase in production volumes for the year ending June 2020.

Australian Dairy Farmers (ADF) president Terry Richardson said the survey results were a welcome boost from last year.

“These survey results show a dairy industry in recovery, although it is unclear whether this confidence will continue to grow in a post-pandemic environment,” Mr Richardson said.

“The industry is still facing some considerable challenges, but this is a positive outlook for the future, with dairy products remaining a staple household item.”

“It appears farmers are recovering from recent production losses and encouragingly, some farmers are actively entering an expansion phase, even as many continue to battle drought, high feed and water costs, and other elements,” Mr Richardson said.