The remaining companies and cooperatives have not yet released their prices. Global firm, Fonterra has hinted the higher prices are a result of improved circumstance. Supermarket chain Coles has meanwhile also said to pay more to the dairy producers, which will lead to higher prices.
John Droppert of Dairy Australia, investment organisation, clarifies that especially the dairy farmers who supply to the exporters will benefit. "Each value decline of 7% to 10% in the exchange rate of Australian dollar makes a difference of as much as AUD$0.45 (€0.31) to AUD$0.50 (€0.34) cents in the milk price, if you supply to a company like Murray Goulburn."
Dairy farmer Peter Costello in Victoria state stresses that Australian dairy farmers receive 40% more than the last year in some cases. "That will help many of us to pay off the debts."
Agricultural sectors now have a different outlook of the future. A survey with different sectors of Australian agriculture, conducted by the National Australian Bank, indicates that the optimism is rising. 42% of the inquiry respondents expect some improvements in the next year. This year there are already more farmers and agricultural enterprises which intend to invest more than in the whole 2012.
Among the poultry farmers the trust has increased by as much as 13%. They are followed by sheep farmers at 10%. However, not every sector is equally optimistic about the future. Grain growers and exporters have more or less the same anticipation. That is largely due to the drop in wheat prices in the US. A large group of Australian farmers are even expecting the situation to deteriorate during the 2013-2014 season.
Long term, according to the Australian government, the expectations are favourable. The demand for agricultural products in Asia is set to double in 2050. China alone accounts for half of the growth, for which Australia can realise a turnover increase of AUD$1.7 billion (€1.2 billion).
Australian dairy sector
Livestock population: 1.63 million cows
Average herd size: 240 cows
Milk production: 9.5 billion litre
Annual production per cow: 5,926 litre
Turnover of farms: AUD 4 billion
Milk utilisation: cheese (34%), butter (28%), consumption milk (25%), milk powder (11%), other (2%)
Export value: AUD 2.76 billion
Share of world trade: 7%
Major markets: Australia, Japan, China, Singapore, Indonesia and Malaysia
Number of workers: about 50,000