Dairy market recovery on the cards – expert

Posted by Daniel Palmer on 21st August 2009

The Australian dairy industry could be poised for recovery, the Chief Executive of the South Australian Dairyfarmers’ Association has said.Speaking to just-food, Ken Lyons noted that “most industry people” are predicting a “market turnaround”. However, he added that “nobody is sure of the timing”.

“One of the indicators that there may be an improvement in international dairy product prices was the 25.8% increase in prices from the online auction by Fonterra in New Zealand last month,” he said.

As global dairy prices have plummeted, the Australian dairy industry has come under pressure with milk prices at or below production costs.

“The downturn in farm-gate prices here in Australia is significant in that at the current prices, coming off record prices 18 months ago, means that most of our farmers are producing milk at about or below the cost of production and this is unsustainable,” Lyons warned.

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