September 30, 2004

Rise In Milk Prices Tipped In Australia

Milk prices at the farm gate in Australia may increase by as much as 10 per cent, Tatura Milk Industries Jeff Martin said.

ABARE recently forecast that milk prices would increase by 4.5 per cent. Martin said that improved seasonal conditions, the improved exchange rate and better international commodity prices would help drive up milk prices.

He said that rising oil prices and rising irrigation costs in some regions may dampen any improvements in returns to dairy farmers.