THE Australian dairy industry looks to have normalised, with a decent seasonal outlook and better farmgate prices encouraging increased production according to the latest NAB Agribusiness Dairy in Focus report.
NAB agribusiness economist Phin Ziebell said it was a welcome relief from the volatility of recent years.
“Farmgate prices are respectable, with most major processors announcing step-ups to the mid-$5 range this season,” Mr Ziebell said.
“This appears to be supporting production, with the latest figures showing November milk deliveries up 4.3pc year on year.
“This provides a partial recovery to the plunge of 6.9pc in 2016/17, caused by a combination of ongoing price