FOR dairy farmers, 2012 will hopefully be a positive year despite volatility overseas and the uncertainty of the Australian dollar.
There is more milk on the market and international prices have eased, but the Australian dollar, expected to drop to about US94c in the next 12 months, will be the driving factor for southern export farmgate prices.
Macarthur farmer and United Dairyfarmers Victoria president, Kerry Callow said the improved seasons had been helpful and production was up.
But she said the current pricing did not allow for recovery in the market.
“Dairy farmers are still recovering from the dramatic drop in milk prices experienced as a result of the impact of the Global Financial Crisis.
“The current pricing does not allow that recovery to continue.”
She said dairy farmers and consumers should remain confident in the market.
“In terms of quality assurance and food safety consumers have every reason to trust the current systems and all things being equal, south-west Victorian farmers have every reason to continue to be confident,” Ms Callow said.