Outlook brighter for Australian dairy industry

Farmgate returns for Australian dairy farmers are forecast to increase in 2015-16.

This is the welcome news for the Australian dairy industry coming out of the ABARES Outlook 2015 Conference in Canberra

ABARES Agricultural Commodities Manager, Peter Collins, said after a challenging year in 2014-15, the outlook for the Australian dairy industry in 2015-16 had improved.

“Both Australian farmgate prices and world dairy prices are forecast to rise in 2015-16,” Mr Collins said.

“Australian milk production and the volume of dairy product exports are also expected to increase over the period to 2019-20, with the medium term seeing growing demand for dairy products in Asia, the Middle East and North Africa.”

2015-16 promises a more positive outlook overall for the Australian dairy industry:

The Australian farmgate price of milk is forecast to increase to 46 cents a litre in 2015-16, up from 44 cents a litre in 2014-15.
The value of Australian dairy exports is forecast to rise to $2.4 billion in 2015-16, up from $2.2 billion in 2014-15.
Australian milk production is forecast to rise to 9.6 billion litres in 2015-16, up from 9.4 billion litres in 2014-15.
Over the medium term, Australian milk production is projected to increase to 10.1 billion litres.

Other speakers at the session, which focused on the future of the dairy industry, were Mark Bennett, Head of Agribusiness Regional Australia for ANZ, and Greg Dennis, owner and director of Scenic Rim 4Real Milk.

This analysis was part of ABARES Outlook 2015 being held in Canberra on Tuesday 3 and Wednesday 4 March. Outlook is Australia’s leading forum for public and private decision-makers in agriculture, and marks its 45th annual conference this year with expert analysis of the business of agriculture.

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