Australian dairy farmers to milk opportunities
4 March 2014
World dairy prices and Australian farmgate milk prices are expected to remain favourable over the outlook period.
That's the message for Australian dairy farmers following the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) release of the March issue of Agricultural commodities at its Outlook 2014 Conference in Canberra today.
“The outlook for dairy is promising. Australian milk production and exports of dairy products are expected to rise over the outlook period,” Manager, Agricultural Commodities, Peter Collins said.
“The value of Australian exports of dairy products is forecast rise by 14 per cent in 2014–15 to $3.4 billion, reflecting forecast higher world dairy product prices and an assumed depreciation of the Australian dollar.”
World indictor prices of a range of dairy products are forecast to increase in 2014–15:
- Whole milk powder and skim milk powder by 2 per cent to average US$5220 a tonne and US$4815 a tonne, respectively.
- Cheese and butter by around 3 per cent and 2 per cent to average US$4920 a tonne and US$4665 a tonne, respectively.
“It's expected there will be continued strong demand for Australian dairy products from Asia, the Middle East and North Africa. In 2012-13, these markets accounted for around 94 per cent of the total value of Australian dairy exports.
“The Australian farmgate price of milk is forecast to rise by around 5 per cent in 2014-15 to average 50 cents a litre.
“In addition to this expected price increase, Australian milk production is forecast to increase by 2 per cent in 2014–15 to 9.25 billion litres, following a small contraction this year.
“Over the medium term, Australian milk production is projected to rise to around 10.2 billion litres by 2018–19.
“The average farm cash income for dairy farms is forecast to rise in 2013-14 to $129 000, an increase of around 192 per cent,” Mr Collins said.