Tasmanian dairy remains competitive, says Rabobank

Rabobank analyst Ben Larkin says Tasmanian dairy has a globally competitive farmgate production model, and the state continues to see a number of dairy farm conversions, in a recent report on growth sectors for the Australian state.

“Tasmanian milk production growth has averaged 2.6% growth annually compared to 0.5% nationally, Larkin says. “We’re also seeing Tasmanian dairy processors embark on a strategy to maximise returns by shifting their product mix to higher-value products and ingredients, an important consideration in what is largely a commodity-based market.”

Recent investment in processing capacity upgrades in the state also means there is an opportunity to process an extra 300 million litres of milk above current milk supply levels.

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