Dairy Situation and Outlook
The Situation and Outlook report provides a summary of current dairy industry conditions, and the outlook for key factors that affect dairy operation and profits.
An annual report is released mid-year, which is supplemented by updates in February and October.
Annual report 2010
View Summary Report - Dairy Situation and Outlook 2010
View Full Report - Dairy Situation and Outlook May 2010
Key points:
• The Australian dairy industry continues to ride the rollercoaster – with a significant improvement in operating conditions compared to 2009.
• Since bottoming in Feb 2009, international dairy commodity prices have increased 80% in US$ terms, but just 30% in $A terms, reflecting tightening supplies & recovering demand in line with improved economic conditions.
• While dairy market fundamentals are sound, economic instability is the key risk to the improving price outlook. Dairy Australia is forecasting an opening price in the range of $4.40-$4.60 per kg milk solids (kgms), implying a full year price range of $5.00 and $5.40 per kgms. This assumes dairy commodities trade at around current levels, and the Australian dollar is in the range of 90 to 95 US cents.
• While many farmers are looking at the best conditions for years, volatility in markets & margins has seen confidence levels unchanged, & greater cautiousness in terms of future production growth.
About the Dairy Situation and Outlook report
The report provides a clear, timely picture of what is happening in the Australian dairy industry and expectations for the future. It contains:
- Industry overview
- Australian market situation and outlook
- International market situation and outlook
- World supply
- Farm sector overview
- National Dairy Farmer survey results
- Farm finances
- Milk production outlook
- Produced by Dairy Australia with support from industry organisations.