I am watching the forecasts for 2016 Australian farmgate milk price with great interest. Dairy Step Up forecast as processors compete for milk.
Photo by Linda Faiers
It is well known that Australian dairy farmers see costs of production – labor, energy and quality feed for their cows as their biggest inputs cost challenge. High milk prices and low costs of production certainly mean happy days and provides the genuine quality of life for their families and their cows and necessary incentive to remain in business for the long haul.
Beyond the fairy tale it is also generally recognized Australia has one of the highest labour costs in the world and competing on costs of production alone in the world dairy stage is becoming almost impossible
At the moment Australian milk price forecasts are being predicted based on competition for milk supply between Australian milk processors rather than the traditional focus on international milk prices. Common sense says you can only pay what you can get out of the market place but then of course you cant sell what you don’t have!
Whilst I love to hear stories that sell hope rather than despair I would be very interested to hear from an industry financial whiz on the current maintain the farmgate milk price strategy irrespective of international markets .
Are these milk prices sustainable for Australian processors selling product into the international market place. Is this strategy likely to drag us into the black hole of Calcutta or will it truly fast-track us all on the road to the promised land?
Wow How impressive does this new tool for dairy farmers look
A FREE web-based tool that lets dairy farmers COMPARE milk prices across participating processors