A Rabobank forecast predicts better times ahead for dairy producers.
Climbing milk prices and favourable seasonal conditions are beginning to be seen in a recovery in Australian milk production and exports.
A national milk production forecast is set to increase by 2.7 per cent in the 2017-18 season.
Rabobank senior dairy analyst Michael Harvey said most of the growth coming from the southern export regions, particularly Victoria, the good reserve of high-quality fodder, good soil moisture and high water entitlement for irrigators was boding well for a strong shoulder and solid finish to the season.
He said Australia’s exportable surplus had contracted significantly in the past 18 months, and ‘‘it is only now that the benefit of improving milk supply will start to drive a recovery in exportable surpluses’’.