Leading processors were optimistic about improving conditions for dairying, but cautious about predicting future farm gate milk prices, at a milk processors forum organised by the Australian Dairy Conference this week.
On the back of strong global dairy trade sales and strengthening demand from Asia, the processors acknowledged there were improving signs.
Bega Cheese executive chair Barry Irvin said he was in a much happier position now than he was last March, but he remained cautious.
He said suppliers were insulated from the worst of drops in commodity prices at opening time last year, but commodity prices did improve, while currency rises had an impact.
“We're relieved to see the recovery,” Mr Irvin said.
“Demand is coming strong out of Asia and China.
“But commodity prices are a bit lumpy and so I am always a bit cautious.
“But I much prefer to be in a position to see prices rising rather than dropping.”
Mr Irvin said they were in a better position now than in March last year.
“I feel optimistic and more comfortable but I temper my enthusiasm.”
Fonterra managing director René Dedoncker said the domestic scene was strong with solid retail business, and exports were consistent because Australia had been a good supply partner to countries in South-East Asia with a trusted product.
“Those fundamentals are in good shape,” Mr Dedoncker said.
“Demand is going to stay fairly stable. We have good on-farm conditions, notwithstanding the issues in recent weeks (flooding).
“China's appetite on GDT has been pretty ferocious.
“Across Asia it has been very consistent.
“Now more than ever is our time to create stability and to leverage that diversity we have in this country.
“We are optimistic about the season ahead.”
Australian Dairy Products Federation president Grant Crothers said milk prices were complex but something that was inherited.
“Under the Dairy Plan, as part of our commitment, we introduced the Milk Value Pool to better explain the value of milk,” Mr Crothers said.
“It's getting quite a few hits per day and becoming a reliable source of information.
“A tool for analysts and observers as well as farmers and their advisers.”
The speakers at the Australian Dairy Conference forum on Tuesday night included René Dedoncker, Barry Irvin, Norco chief executive officer Michael Hampson and Grant Crothers.
The hour-long, online forum was organised due to the annual conference not being held this year.