Tasmania sets state record for milk production

Tasmanian milk production hit its highest level ever of 961 million litres, for the year ending 30 June 2021, a 1.2% increase on the previous year.

According to Dairy Australia’s Situation and Outlook Report June 2021, Tasmania’s dairy industry has enjoyed another year of relatively favourable seasonal conditions. Rainfall combined with warmer temperatures helped maintain good pasture growth in many parts of the State, alleviating some of the pressure from relatively firm feed costs (grain prices in Tasmania were fairly high in FY21 despite otherwise good conditions).

DairyTas Executive Officer, Laura Richardson, said: “We’re seeing high farmer confidence in Tasmania which is great for the industry. A good season, with strong pasture growth and relatively high farmgate milk prices have helped to drive increased milk production.”

The 2021 National Dairy Farmer Survey indicated that almost 93% of dairy farmers in Tasmania expected to make a profit in the FY21 season and 69% believed this profit would be larger than the five-year average

“Tasmanian dairy farmers are the most optimistic in the country, in relation to feeling positive about their operations. Farmers in Tasmania have now enjoyed several consecutive good seasons. “Farmers who are positive in their outlook and operating profitable businesses are more likely to invest, and that is a great thing for the State and for the dairy industry. Thirty-two per cent of farmers in Tasmania say they are in an expansion phase and 40% say they are likely to increase herd numbers this year. And with 73% of farmers feeling positive about the future of the dairy industry, things are looking bright,” Ms Richardson said.

Dairy Australia’s Senior Industry Analyst, Sofia Omstedt, said that over the long term, milk production in Tasmania has increased, with 32% growth in the past 10 years, and 63% compared with 20 years ago. The latest figures available show that in FY20 there were 182,000 dairy cows and 391 dairy farms in Tasmania.

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