Rabobank data shows that milk production in Australia is increasing

New data has shown that milk production in Australia is increasing. However, Tasmania dairy producers are worried about potential challenges the industry could face.

Dairy cows at the Tasmanian Institute of Agriculture dairy research centre in Elliott, Tasmania Picture: LUKE BOWDEN

Things are on the up for Tasmanian and Australian dairy producers, according to new figures, but one industry leader says challenges still exist for many.

New data from Rabobank shows that between July 2023 and January 2024, Australian milk production increased by 2.5 per cent to 5.35 billion litres.

DairyTas regional manager Deb Morice said the industry looked good in the state.

“Tasmania was the only state to record milk production growth last season - 2022/23 - and milk flows have continued to grow every month of this season,” Ms Morice said.

“Season-to-date milk production (to January 2024) was up four per cent.

DairyTas regional manager Deb Morice. Picture: Supplied.

“Around 35 per cent of Tasmanian dairy farming businesses have reported they are in an expansion phase, as part of the 2023 National Dairy Farmer Survey, which was higher than any other state.

“The average profitability of Tasmanian farms was well above the 10-year average during the 2022/23 season, as reported by the 2023 Dairy Farm Monitor Project.”

However, Ms Morice said it was not all good for dairy producers.

“Less cows, ongoing farm exits, labour challenges and potential changes to farm business income are likely to weigh on longer-term milk production.

“More recently, conditions in Tasmania have been drying out, as most of the timely summer rainfall hit parts of mainland Australia missing our dairying areas, irrigation water in some areas is in short supply.

“Leading into the cooler months, demand for supplementary feed is likely to increase, especially as autumn rainfall is forecast to be below average in parts of Tasmania.

“Short supply of silage and hay is prevalent throughout the state.

Dairy farmer Paul Lambert also had some concerns for the industry.

“Prices are down a bit from last year, but still okay,” Mr Lambert said.

“I think most people will get through it because they’ll be able to afford to buy feed that they need for their animals and things like that.

“Hopefully, it’s a blip, but at the moment, it’s a bit of a tough time.

“We need to have good milk prices to keep going, or people will continue to exit the industry, which is always a shame when you see people leave.”