More milk but what about markets?
Expansion in milk production is the buzz topic in farming in recent times with a target increase in milk production of 50% in the period up to 2020. It is a topic that has been written about extensively and discussed at farmers conferences all over the country. It is also being discussed at industry and processing level. To date, the summary of these discussions and debates seem to suggest that the target of 50% can be achieved at farm level but, apart from talking the talk, there is little concrete suggestions or movement from the processing or marketing side.
With all the improvements in dairying technology and dairy breeding since 1985 and the continuing increase in the number of well bred dairy heifers, the least of the problem in increasing milk production by 50% will be at farm level, if milk prices and finance availability is favourable. The forecast for dairy prices is positive for the medium- and long-term, but there will be volatility in prices from time to time.
