QDO Weekly Update News - 27 January 2017

Dairy price predictions shift upwards

Dairy market analyst Freshagenda is upping its southern 2016/17 southern Australian price range to $5-$5.40/kgMS, up from $4.80 to $5.20.

Director Steve Spencer said: “For the 2017/18 season, further significant improvement is expected as the strong lifts in product spot values are locked into export and wholesale prices, giving a forecast range milk price between $5.90 to $6.30/kgMS. The drop in global milk output will start to reverse in mid-2017 but take some time to impact product values.”

…AND: Barry Irvin, Bega chair: “In difficult years it is always challenging to talk about business growth but it is my strong belief that that is exactly the time to do so…The current global industry circumstances have changed from significant over-supply to a more balanced supply/demand regime. Price improvements are looking more sustainable, input costs are improved and there are a number of reasons to have a positive view on 2017/18 industry circumstances.”

Dairy levy poll put out to pasture

The 2017 dairy levy poll has been put out to pasture, with the poll advisory committee ruling it unnecessary. The 15-member Dairy Levy Poll Advisory Committee made the decision after receiving a report and recommendation from Australian Dairy Farmers and Dairy Australia that there be no change in the levy rate. The decision can be challenged with a petition from Group A Dairy Australia members who combined paid 15% of total levies in the previous financial year. The last time the five-yearly vote was held, in 2012, it cost $720,000. Lobby group Farmer Power has reportedly started a petition seeking a 0% levy rate.