The dairy industry is heading in the right direction despite weather forecast models suggesting drier than normal conditions throughout spring and summer.
That was the verdict from guest speakers at the Murray Dairy Setting Up Your Seasons workshop in Shepparton on Thursday.
Rabobank senior analyst Michael Harvey said the 2017-18 year would most likely be a year of transition.
‘‘Global markets are well balanced and should support farm gate prices reaching $6/kgMS unless there is fundamental changes but for many 2017-18 will likely be a season of transition,’’ he said.
Following on Dairy Australia’s Situation and Outlook report, Rabobank conducted its own survey which found encouraging trends in dairy farmer confidence, export returns, milk prices and milk supply after two years where supply had fallen to two-decade lows, with 50 per cent of that loss coming from northern Victoria.
All this is despite Agriculture Victoria’s seasonal risk agronomist Dale Grey saying that forecast weather models were suggesting mixed rainfall models and average or warmer temperatures throughout late spring and summer for Victoria after consistent high pressure systems caused dry conditions for most of the state in June.