Dairy Australia issues positive recovery outlook

The Australian dairy body has issued the upbeat outlook following research from the country’s Australian Bureau of Agricultural and Resource Economics (ABARE).

Dairy Australia said that despite a number of local shocks to the industry, including a severe drought, the prospect of strong milk prices is giving dairy farmers confidence to invest in their businesses and forecasts Australian dairy exports would increase by 8.5% in 2007/2008.
“The ability to recover quickly from the drought once there is a wide-spread break in seasonal conditions will depend largely on the financial situation of individual farmers, availability of irrigation water and the ability to rebuild herds,” says Jo Bills, manager of strategic analysis at Dairy Australia.