The latest Situation & Outlook from Dairy Australia (DA) shows farmers remain confident about the industry future with the majority still making an operating profit.

DA expects milk production to finish 2% to 3% higher YOY in the 2023/24 season at 8.35bn litres. The forecast for the upcoming season is less positive, with a 1%dip forecast in 2024/25 compared to the current season. 

Among the 600 farmers interviewed in February, 68% are positive about the industry future (up 1% YOY), while 83% are positive about their own business. 86% of farmers surveyed reported an operating profit in financial year 2022/23, down from 90% the year before.

Farmer confidence varied from region to region; 73% of GippsDairy respondents are significantly more likely to be positive about the industry than 12 months ago, up from 62%, while DairyNSW respondents are less confident 60% due to drier and warmer than average conditions. Drought like conditions in Tasmania have caused confidence to slide from 88% to 73% in 12 months.

Around 23% of farmers surveyed are planning to expand operations and 88% of farms are planning to spend capital on improvements to their farms. 44% of farmers were concerned about climate or weather conditions for the next 6 to 12 months.