Bright outlook for farmers
THE majority of Australia’s dairy farmers are feeling more confident about the industry according to the latest National Dairy Farmer Survey.
Nearly three quarters of farmers surveyed by Dairy Australia were positive about the outlook for the future of the industry.
A lower Australian dollar, positive commodity price outlook and improved seasonal conditions are thought to be behind the lift.
President of the South Gippsland branch of the Victorian Farmers Federation, Gordon Vagg, said the main reason for the rise in confidence was the milk price.
“It is one of the best opening prices we have ever had. Every farmer watches the Australian dollar, which has come back more than 10 cents. That affects us big time,” he said.
“It has given us a bit of life.”
Mr Vagg said Australian and New Zealand products are highly sought after by overseas markets because they are clean, disease free island countries.
“The lower dollar makes our products cheaper and easier to sell to those overseas markets,” he said.
Dairy Australia’s commercial research and analysis manager, Norm Repacholi, said while domestic sales continue to be sluggish, China was driving global dairy markets.
“Imports of dairy products in the first part of 2013 were up 26 per cent on the corresponding period in 2012,” he said.
“The nation’s farmers and dairy processors have coped with a range of challenges across the past two to three seasons.
“Now the vital factors – weather, inputs, price and demand – appear to be settling in the industry’s favour in most parts of the country.”
Mr Vagg said it looks as though the weather patterns are changing and South Gippsland is returning to normal spring conditions.
“It is shaping up to be a top spring. Farmers in this area are low on fodder reserves so we are looking for a good spring to restock our fodder levels,” he said.
“If we get a good spring leading into summer, cattle will be in better condition and will produce more meat and milk.
“This winter was not as long and wet like it was the last couple of years. It did get wet in August, but we couldn’t handle it because it wasn’t wet in June.”
Mr Vagg said one good year will help to make up for the past few, which have been tough for a lot of farmers.
“Some would have had to borrow more money to get through. Farmers right across the board, dairy, beef, whatever took a big hit. It will take at least 12 months to get out of it,” he said.
Rabobank state manager for Victoria, Todd Charteris, said dairy farmers are expecting more positive returns this season and sheep and beef graziers are entering spring with promising feed growth.
“The tough climatic conditions dairy farmers have been operating in have eased and there is also expected to be some relief in feed costs over the next six months,” he said.
“Circumstances are also proving to be favourable for sheep and beef producers, with feed levels improving as they head into spring.”
Mr Charteris said there was still a sense of caution in the sector.
“Dairy farmers are consolidating after last year, which was tough from both a price and production perspective,” he said.
Looking up: Gordon Vagg, president of the South Gippsland branch of the Victorian Farmers Federation, said a lower Australian dollar, coupled with high milk prices and a promising weather outlook were contributing to increased farmer confidence.
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Posted by Sarah Vella on Sep 17 2013. Filed under Featured, Rural News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
