Dairy Australia: Farmer confidence 2024 survey highest since clawback

Confidence in the dairy industry is at its highest level since before the 2016 clawback. But how much do farmgate prices play a part?

Dairy farmer confidence is at a decade peak. Picture: Zoe Phillips

Strong milk prices have fuelled farmer confidence to pre-2016 clawback levels, but industry leaders say a question mark hangs over next season.

Dairy Australia’s annual survey of primary producers found 68 per cent of respondents were confident about the industry’s future — the highest figure in a decade.

It comes as the dairy authority’s situation and outlook report forecasts the 2023-24 will clock in at 8.35 billion litres at the end of the financial year on June 30.

Dairy Australia insights manager Eliza Redfern said robust farmgate milk prices and stabilised input costs had led to the positive results in the 2024 National Dairy Farmer Survey.

“We had 68 per cent (of respondents) say they were positive about the industry’s future and 83 per cent say they were positive about their own business,” Ms Redfern said.

“On the question of profitability, 86 per cent (of respondents) say they made an operating profit in the 2022/23 financial year.

“The past couple of surveys have highlighted confidence in dairy, reflecting the higher prices paid over the past few seasons.”

Like previous surveys, Ms Redfern said there was regional variability in respondent confidence — Gippsland farmers were significantly more likely to be positive about the industry than 12 months ago — rising from 62 per cent to 73 per cent.

However, NSW farmers were less confident, with a drop from 83 per cent to 60 per cent over the same 12 month period following a drier and warmer than average 2023 and above-average rainfall in summer.

Central NSW farmer Graham Forbes said results in his home state may have also been impacted by concerns over the viability of retail prices.

“It doesn’t surprise me that confidence is up across most of Australia — the farmgate price plays a big role in that of course,” the Gloucester NSW farmer said.

“As for NSW, it depends on where you farm in the state.

“Every is keeping an eye on prices for next season. That’s the first and foremost indicator of confidence, of course. Input costs have come off somewhat, but the electricity bills keep coming in and everyone knows they’re not coming down.”