New figures compiled for a UDV report show how average dairy milk prices have remained static in real terms over the past 10 years.March 5, 2014 4:00am
New figures compiled for a UDV report show how average milk prices have remained static in real terms over the past 10 years.
Although the prices have picked up for this season, they came off a low base in the previous year, described by one northern Victorian UDV leader as unsustainable.
The latest Dairy Australia Situation and Outlook report found farm gate prices increased by about 25 per cent this season, although the increased cash flow was being soaked up by paying off debts and creditors.
West Goulburn UDV branch president David Glass described the worst two years in the past decade, 2006-2007 and 2012-2013, as being unsustainable.
The figures, compiled by consultants Farmanco, show an average milk solids price of about $5/kg during those 10 years.
‘‘Prices paid to farmers who supplied companies that sold product mainly in the domestic market in 2012-2013, were also lower,’’ Mr Glass said.
‘‘This provides further evidence that prices paid for milk for the domestic markets are strongly influenced by fortunes in the export market.’’
He said the 2012-13 season was probably the toughest year since the end of the prolonged drought that affected northern Victoria from 2002 to 2010.
Mr Glass said the prices in eight out of the past 10 years were unsustainable.
Farmers had tried to adapt by increasing herd sizes and trying to lower costs.
Mr Glass said milk prices this season looked far more promising, starting out with higher prices, and he hoped they would reach $7/kg milk solids by the end of the year.
Farmanco principal Ian Gibb said the dairy industry needed some years of higher prices if it was to remain competitive.
Input costs for dairy farmers were identified in the Dairy Australia update as an issue to watch, with the northern Australia drought holding feed costs high, the possibility of fertiliser costs rising due to the weakening Australian dollar and demand for live dairy exports putting a floor in cattle prices.
One of Australia’s largest markets, China, is relaxing its one child policy which may see a rising demand in infant formula, made by Victorian processors.
Dairy Australia is anticipating steady international demand with the global economic recovery expected to continue.
The recently signed free trade agreement with Korea is expected to make Australian production more competitive.
Katunga winemaker Carlo Monichino lived life to the fullest and proved that anything was possible with hard work and a dream.
Although still not at their best, Mulwala have finished on top of the Murray League ladder after a comfortable victory over Cobram.
The International Guide Jamboree will take place at Lake Somerset, South East Queensland from September 25 to October 3, for Guides aged 10-17 years, and will be hosted by Girl Guides Australia.
CAMPASPE’S meals on wheels volunteers deserve to be celebrated.
MANY things run in the family in Rochester.
Kyabram under pressure to maintain vital top three spot
The Seymour sub-branch of the RSL needs information on local soldiers during World War I.
Berrigan public decides drainage works location
EARTHCOTE Events boss Spiro Boursinos has slammed allegations his annual Pyalong festival is anything but a safe and well organised function.
Handymen and creative builders will now have a safer space to work in after a donation allowed the Cobram Men’s Shed to invest in a defibrillator.
Cancer claims one of its fiercest combatants.
Water allocations were increased in the Goulburn-Murray Water region today.
The News magazines are online - read high quality magazines in your time. Check in regularly for the latest editions.
Riverine Herald's well regarded locally produced magazines. They're now online, so you can read them whenever and wherever you like.
Search for published and unpublished photos from McPherson Media Group newspapers and magazines. All our photos are available to purchase.
Place an advertisement in any one of McPherson Media Group's local newspapers.