Australian dairy farmers are predicted to produce up to 9.5 billion litres of milk this year, up 2 per cent on last year.
The forecast is included in Dairy Australia’s situation and outlook report, released today.
The report shows 73 per cent of dairy farmers are feeling confident about the industry, up from 44 per cent in February.
Dairy Australia’s Norman Repacholi can’t say what these figures will mean for farm gate prices.
«One of things that has changed internally, because of the nature of milk pricing, (is that) we are not going out there to market with a milk price similar to what we’ve done previously.
«The indications that the manufacturers are giving is certainly looking like they are going to close over $6 (per kg milk solids).
«From that perspective, I’d be inclined to go with what the manufacturers are talking about.»
The milk production figure of 9.5 billion litres is a far cry from the 11 billion litres Australia’s dairy farmers produced over a decade ago.
But there is improvement in the industry.
Across Australia, farmers are feeling better about their future in dairying.
Tasmanian farmers lead the way, with 93 per cent confident, followed by Victoria’s three main regions Murray Dairy (80 per cent), Western Victoria (80 per cent) and Gippsland (74 per cent), New South Wales (78 per cent) and South Australia (67 per cent).
Unsurprisingly, Queensland (35 per cent) and Western Australia (50 per cent), which are almost entirely reliant on supermarket sales, not exports, have little confidence in the industry.
However, every state showed improvement in farmer confidence.
Source: ABC