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Volatile future for dairy industry

Posted on January 29, 2009, 1:01pm

The Australian dairy industry has been shaken by the global financial downturn, according to Dairy Australia’s latest “Situation and Outlook” report.

Dairy Australia’s manager of strategy and knowledge Joanne Bills said the rapid, unprecedented fall in international markets and recent cuts to current season prices had created uncertainty and undermined confidence in the industry.

Ms Bills said the outlook over the next 12 months remained uncertain and volatile.

But it was not all bad news for Australian farmers as easing input prices should cushion some of the blow.

“Lower grain and fuel prices, also the result of the global economic downturn, should start flowing through to farmers over the coming months,” Ms Bills said.

“While these lower input prices will help protect margins, managing cashflows in the face of significant milk price cuts will be a challenge for most of 2009.”

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