The Australian dairy industry continues a wild ride however significant improvement in operating conditions for 2010 have been seen compared to 2009. Capricorn pastoral export high quality Australian Dairy cattle.
Low prices in Feb 2009, international dairy commodity prices have increased approximately 79% in US$ terms, but just 31% in $A terms, reflecting tightening supplies & recovering demand in line with improved economic conditions.
The dairy market fundamentals are strong, economic instability is the key risk to the improving price outlook. "Dairy Australia" is forecasting an opening price in the range of $4.40-$4.60 per kg milk solids (kgms), implying a full year price range of $5.00 and $5.40 per kgms. This assumes dairy commodities trade at around current levels, and the Australian dollar is in the range of 90 to 95 US cents.
International and domestic dairy farmers are looking at the best conditions for years, volatility in markets & margins has seen confidence levels unchanged, & greater cautiousness in terms of future production growth.
Buyers of dairy catle Please go to australianlivestocktraders and complete the quote form.