Hopes for milk expansion depend on price

Expansion in milk production is the buzz topic in farming in recent years, with a target to increase milk production 50% up to 2020.

The summary of discussions and debates seems to suggest that the target of 50% can be achieved — but a lot will depend on milk price.

With all the improvements in dairying technology and dairy breeding since 1984 (when milk quotas arrived), and the continuing increase in the number of well bred dairy heifers being bred, the least of the problems in increasing milk production by 50% will be at farm level, if milk prices and finance availability are 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.