Australia - Dairy incomes 24pc higher in 2005-06: ABARE
Published:October 11, 2006
Source :ABAREconomics
Dairy farm cash incomes have recovered steadily over the past three years from the low recorded in 2002-03. Average farm cash income for Australian dairy farms is projected to be 24 per cent higher in 2005-06 than in 2004-05, at around
$102 000 a farm, according to a new ABARE report.
The report, Australian Dairy – Production Systems, Productivity, Profit and Technology, was released today by Karen Schneider, acting Executive Director of ABARE. Information in the report is based on ABARE’s annual dairy industry survey.
‘In the past two years, higher milk prices have been a major factor behind the recovery in farm cash incomes for Australian dairy farmers. Milk prices rose by 3.5 per cent in 2005-06, which more than offset slightly lower milk production in that year,’ Ms Schneider said.
Lower fodder costs also contributed to lower average cash costs, which further boosted the bottom line for dairy farmers.
Ms Schneider noted that since the late 1990s dairy farm numbers have been falling but annual milk production has been maintained at slightly more than 10 billion litres.
‘At least part of this has been achieved by the greater use of more intensive production systems,’ Ms Schneider explained.
The use of supplementary feeds has increased to be much higher now than it was in the late 1990s.
The focus of dairy producers on feeding systems shows no signs of abating. Around 60 per cent of Australian dairy farmers expect to introduce significant changes to their farm management over the next year and most of the innovations and new management practices being considered focus primarily on aspects of pasture production and feed management.
In releasing the report, Ms Schneider acknowledged the financial assistance to ABARE’s dairy industry surveys program from Dairy Australia.
