South Australian dairy farmers face some headwinds including milk price cuts, additional fodder costs caused by seasonal pressures, rising interest costs and late processor payments for some.

Some suppliers to Beston Global Food Company say significant portions of their May milk cheques are yet to be paid, and there are concerns about June payments, with some switching companies amid the uncertainty. Beston extended a trading halt on its shares as it negotiates funding for debt restructuring. SA Dairyfarmers’ Association president Robert Brokenshire says Beston are an important part of the SA industry, accounting for almost a third of the state’s milk, but have been hit by lower export prices.

However Brokenshire says the long-term prospects are good, with SA processors indicating an increase in demand to 700m litres by 2029 from 500m litres currently. A template for growth was outlined in the industry’s five-year action plan, released in April.