Farmers producing less milk as dairy crisis bites

The amount of milk being produced in Australia is plummeting as the dairy crisis starts to bite on farms around the country. By Warwick Long
Share on twitter
Share on facebook
Share on linkedin
Share on whatsapp
Share on email

If predictions are true, production is set to fall to lows not seen in 20 years.
Steve Spencer, director at food and dairy consultancy Fresh Agenda, said so far the numbers had shown that the cut to Australian milk production in response to the world downturn in dairy was one of the most severe.
«Some people are talking upwards of 5 per cent, probably 5 to 10 per cent which is a big lump of milk,» he said.
«It takes us back, would you believe, to the mid 1990s if we’re at the top end of that scale.»
Milk production in most dairying regions around the world has fallen as a response to a global oversupply.
Two of the world largest dairy producing regions, New Zealand and Europe, have recorded smaller drops in the amount of milk farmers are producing.
Mr Spencer believes the fall in Australian production is one of the most severe of anywhere in the world.
«I think it’s [because of] the way it’s been done,» he said.
«It’s just pushed a larger number [of farmers] over the edge – whether it be psychological or whether it be pure financial and physical; people have had enough.»
World prices starting to rise
As farmers around the world start to produce less milk, their price prospects are starting to improve.
Global Dairy Trade, a twice-monthly dairy product auction, has now recorded three straight increase in prices with a 7.7 per cent increase on Tuesday night.
All products rose in price including butter, cheddar and milk powders.
The market is now at its highest point since March last year.
Mr Spencer said the outlook was improving for dairy prices but it would take some time for higher prices to make it to the farm gate.
«The balance between supply and demand is shifting back towards being demand driven,» he said.
«It’s not significant yet but we expect it will continue.»
 
Source: ABC
Link: http://www.abc.net.au/news/2016-09-07/farmers-producing-less-milk-as-dairy-crisis-bites/7820132
 

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

Te puede interesar

Notas
Relacionadas