Gippsland dairy farmers who responded to the Situation and Outlook survey are significantly more positive about the industry’s future, and 85 per cent are positive about their own business.
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Levels of optimism have returned to similar points reached in 2011 and 2014.

Farm gate prices and favourable seasons are key drivers of this increase, plus notably lower concerns with input costs during the past few years.

Last financial year, profitability was significantly more widespread than in 2018-19 (87 per cent, up from 66 per cent).

In 2020-21, the vast majority (89 per cent) expect to make an operating profit.

This has helped to support more farmers investing in their business and higher levels of on-farm capital investment.

In the next six months, climate and farm gate prices are the most commonly expected challenges and issues with labour accessibility are expected to be more common than in previous years.

About 10 per cent changed their milk factory and about 15 per cent intend to change their processor.

The proportion of Gippsland farmers who are intending to increase their milk production is higher than the national average, yet a smaller number intend to increase their herd size.

97 Milk’s slogans supporting whole milk are appearing ever farther afield from the group’s home base in southeastern Pennsylvania.

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