Despite erratic seasonal conditions, outgoing Dairy Australia chair James Mann says it has been a good year to be a dairy farmer.
In his annual report presented at the Dairy Australia annual general meeting on November 27, Mr Mann said the good year for farmers was reflected in the growth of the milk pool and most farmers having a positive outlook for their business.
Although climatic conditions, including a green drought, had been difficult to navigate, Mr Mann said farmers achieved record levels of profitability.
“Despite the erratic season, overall last year was a good year to be a dairy farmer,” he said at the meeting in Warrnambool.
“This was reflected in the growth in the milk pool, with milk volumes growing at a faster rate than forecast, up 3.1 per cent on the previous year, with full-year volumes increasing in all states.”
Farmer confidence was stable, with 83 per cent having a positive outlook.
Dairy Australia recorded a surplus of $3.9 million for the financial year.
Mr Mann said the growth in the milk pool underpinned the stronger than expected position, providing opportunities for further investments in the coming year.
“Although the current year isn’t expected to be quite as strong in light of the sporadic conditions, current milk volumes indicate we are holding steady on the same time last year.”
Mr Mann said setting up the industry for climate adaptability continues to be important, so that farmers are prepared for both the environmental and regulatory future.
“As dairy farmers, we are part of the global methane challenge, and we need to be part of the solution,” he said.
“Investing in managing climate and the environment equips farmers with the information and tools to support decision-making that will improve productivity, so that we’re producing more milk for less input, and reduce our exposure to climate-related events and regulation, whilst also demonstrating our industry’s long-standing commitment to sustainability.”
Mr Mann said Dairy Australia was in the final year of its five-year strategic plan, with consultation and development under way with famers and key stakeholders for the next plan.
“We’ve identified several opportunities for improvement. Every farmer will have the opportunity to participate in the consultation for the next five-year plan.”
He added that he continued to believe in the power of dairy farmers working together to advance the industry.
Dairy Australia managing director David Nation said in 2022-23, farmers achieved the industry’s profitability target for the first time since it was set in 2019, with 90 per cent achieving the profit target of $1.50/kg of milk solids — an increase of 27 per cent on the previous season.
Mr Nation said attracting people to the industry and retaining them had been a core challenge for many farmers, but there has been progress on this front with almost half a million jobseekers visiting dairyjobsmatter.com.au, with more than 58,000 going on to access the Dairy Jobs Board.
“We’ve seen an increase in the number of adults in regional Australia agreeing that dairy offers a range of rewarding career options, from 69 per cent in 2023 to 76 per cent this year,” he said.
Consumer trust in the dairy industry continues to climb with the most recent results showing that 83 per cent of consumers trust Australian dairy, and 70 per cent of consumers agree that cow’s milk is more nutritious than dairy alternatives.
Another priority remains growing and maintaining demand for Australian dairy products in global markets, with more than 30 per cent of the milk pool exported each year.
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