July 6, 2010

Australia's farmers see positive dairy outlook
 
 
Many dairy farmers in Australia hold the view that the market is certainly looking better amid a new financial year and a fresh season.

However, some dairy farmers remain in the dark with their processors still tight-lipped about opening new-season prices. When asked about their financial positions, responses from Victoria's farmers were mixed. Some were in the red by as much as AUD80,000 (US$67,000), with most recorded losses ranging from AUD12,000-AUD17,000 (US$10,000-US$14,000). Others said they would record a small profit, while most were confident they would break even due to cost-cutting measures.

According to the Australian Bureau of Agricultural and Resource Economics' Financial performance of Australian dairy farmers report, released earlier this month, farm business profit varied greatly by state and region.

ABARE estimated that Riverina and northern Victorian dairy farmers would record an average business loss of AUD109,800 (US$92,200) for 2009-10 and, in contrast, West Australian dairy farmers would record an average profit of AUD129,600 (US$108,900).

Last year, Riverina and northern Victorian farmers recorded a loss of AUD76,470 (US$64,200), while West Australians achieved a profit of AUD203,710 (US$171,100).

Gippsland farmers were also in the red to the tune of AUD60,000 (US$50,400), while it was expected that, on average, Western District dairy farmers would record a loss of AUD51,800 (US$43,500).

Last year, Gippsland producers recorded a loss of AUD17,080 (US$14,300) while Western District producers achieved a AUD10,800 (US$9,000) profit.

Average farm business profit in South Australia was AUD64,900 (US$54,500), down from AUD132,530 (US$111,300) last year.