South Australian Dairy Association president Robert Brokenshire said prolonged dry conditions are forcing producers to reduce herd sizes, sell young stock and, in some cases, leave the industry altogether. He warned that even if seasonal conditions improve, rebuilding dairy herds and restoring milk production could take at least two years.

At the same time, farmers are being squeezed by sharply rising input costs. Urea fertiliser prices have climbed from A$900 to A$1,350 per tonne, while booster fertilisers are now selling for between A$1,350 and A$1,450 per tonne. Higher diesel and petrol costs are adding further strain across the entire dairy supply chain, from feed transport to milk collection.

Brokenshire said farmers will need processors to deliver the strongest possible milk price in the coming season if dairy businesses are to remain viable. However, he acknowledged that processors themselves are facing rising costs. He also called on the federal government to convene an agricultural summit focused on food security, fuel access and the long-term future of Australia’s farming industries.