“The ability to recover quickly from the drought once there is a wide-spread break in seasonal conditions will depend largely on the financial situation of individual farmers, availability of irrigation water and the ability to rebuild herds,” Ms Bills said.

“With positive impacts from past investments in new technologies and increased efficiency, combined with higher milk prices, the prospects for the dairy industry to recover from the drought and prosper in the future look favourable.

“The report indicates that provided investments are well directed and maintained over time, they have the potential to contribute to further productivity growth and income in the future,” she said.

With tight supplies and strong global demand expected to increase farmgate milk prices, the incentive for farmers to rebuild and increase their dairy herds is stronger than ever.

ENDS

For more information contact:
Sarah Kulman on 03 9694 3849, 0400 006 295 or This email address is being protected from spam bots, you need Javascript enabled to view it