Dairy Australia lowers milk production forecast

A combination of tighter margins and dry climatic conditions is likely to impact Australia’s milk production in 2015-16, Dairy Australia said, adding it was lowering its forecast by up to two percent.

It said milk production was estimated to be between 9.55 and 9.65 n=billion litres.

According to Dairy Australia, higher prices for grain and hay, combined with lower milk prices, have reduced the scope and incentive for farmers to draw on alternative feed sources to maintain or grow production

High beef prices in Australia at this point also meant that under-performing cows were being culled, it said, adding that while it expected volumes ro rise during autumn, a full recovery was difficult due to the slow spring and summer.

 

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