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News 656 views last update:14 Jan 2016

Australian dairy farmers face high grain prices

In Western Australia dairy farmers are preparing themselves to face several challenges to the industry in the coming six months.

Phil Depiazzi WA dairy section president says Western Australia is being hit particularly hard, with the price of grain-feed set to soar.

A report by the agribusiness Rabobank has revealed the global dairy market is heading for a period of supply scarcity this year, a direct result of extreme feed costs, unfavourable weather and low milk prices.

Mr Depiazzi says “combined with poor seasonal forecasts, dairy farmers are going to continue to suffer.”

"The concern is over the tightening of supply, particularly through the coming summer/autumn period where we see an increase in grain prices, and a fairly dry winter," he said.

Mr Depiazzi say coupled with what's set to be a scorching hot summer, the combined that will continue to drive milk supply down.

"Those factors are certainly going to put downward pressure on milk supplies through this coming summer unless there is an incentive in the price processors offer farmers," he said.

Source: World-Grain

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