The New Year is here! After a turbulent 2021, we are sure that every Australian is ready to look forward to the new year and put last year behind them. Though a tough year, it was an extremely innovative year for many industries as they continued to adapt to the many changes the world threw their way.
Along with this innovation came many changes to industries as a result, and now we want to look at the bright future ahead. And the dairy industry is one of them.
The Victorian dairy industry specifically leads the nation, accounting for 77 per cent of Australia’s dairy exports, valued at $2.1 billion, with the gross value of milk produced in Victorian worth $2.7 billion. So without a doubt the industry is a strength within Australia, as our abundance of land and diversity of climates makes the country prime for farming activity of all kinds, including dairy farming.
The Australian dairy industry has continued to grow over the past two years, despite supply chain challenges plaguing the country. With favourable seasonal conditions leading to cheaper feed bills, those within the dairy industry are well placed to enjoy consecutive seasons of dairy profitability, which is a part of the bright future forecasted for the industry in 2022.
The domestic dairy market continues to perform well, and the Australian economy is well placed to continue seeing growth despite the previous quarters seeing recession. Exportable surplus is also expected to expand through the rest of the 2021-22 season, which will deliver profitability to the local dairy industry.
Economic recovery is the key.With a bright future forecasted for Australia this year as every state opens up domestically, we once again welcome skilled migrants and tourists are back to enjoy everything our country has to offer, dairy will continue to thrive.
In hopes that no further lockdown will hit hospitality, an increase in Australians heading out to hospitality venues will also increase and further strengthen the industry. With more dairy products needed, the more tourists and locals head out to eat at restaurants and food service venues.
Additionally the La Niña that is currently making its way through the Southern Hemisphere will bring the potential to strengthen the Australian season, as the threat of drought becomes basically non-existent, and conditions will be perfect for dairy farmers in Australia. While this is a plus for the Australian industry it does impact international industries, as it means drought is expected across southern Brazil and Argentina, which might wreak havoc on their dairy production.