Australian Dairy Shaken by Global Tremors

AUSTRALIA - Confidence in the dairy industry was shaken over the past 12 months due to the global financial crisis, a survey showed on Tuesday.
calendar icon 31 March 2009
clock icon 1 minute read

"It is a very tough time for many of our dairy farmers," Dairy Australia managing director Mike Ginnivan said in a statement. The medium and long-term outlook for the industry has improved despite the current conditions, with commodity prices stabilizing in recent weeks, adding to early indications of a recovery in demand.

"It is expected that as developing markets begin to recover next year and beyond, and dairy becomes more incorporated into developing countries' diets, consumption should rise," Ginnivan said.

According to Australian Associated Press, a national survey of 1,000 dairy farmers has found the proportion of farmers feeling positive about the future has dropped by 12 percent in a year, reflecting concerns about the impact of the economic slowdown on milk prices.

Milk prices have remained the single biggest challenge for farmers, impacting on producer plans, with one in three of those surveyed citing milk prices as their biggest future concern.

The European Union's export subsidy scheme has dampened Australian milk exports, which has added to dairy farmers' worries.

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