Tasmania has set a state record for milk production, with the state's dairy cows producing 961 million litres for the year ending June 30.
The record figure is a 1.2 per cent increase on the previous year.
According to Dairy Australia's Situation and Outlook Report June 2021, Tasmania's dairy industry has enjoyed another year of relatively favourable seasonal conditions.
The report found that rainfall combined with warmer temperatures helped maintain good pasture growth in many parts of the state, alleviating some of the pressure from relatively firm feed costs.
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Grain prices in Tasmania were fairly high, despite otherwise good conditions, the report said.
"We're seeing high farmer confidence in Tasmania which is great for the industry," DairyTas executive officer Laura Richardson said.
"A good season, with strong pasture growth and relatively high farm-gate milk prices have helped to drive increased milk production."
The 2021 National Dairy Farmer Survey, which is included in the June report, indicated that almost 93 per cent of dairy farmers in Tasmania expected to make a profit in the 2020-21 season and 69 per cent believed this profit would be larger than the five-year average.
"Tasmanian dairy farmers are the most optimistic in the country, in relation to feeling positive about their operations," Ms Richardson said.
"Farmers in Tasmania have now enjoyed several consecutive good seasons.
"Farmers who are positive in their outlook and operating profitable businesses are more likely to invest, and that is a great thing for the state and for the dairy industry.
"Thirty-two per cent of farmers in Tasmania say they are in an expansion phase and 40 per cent say they are likely to increase herd numbers this year.
"With 73 per cent of farmers feeling positive about the future of the dairy industry, things are looking bright."
Dairy Australia's senior industry analyst Sofia Omstedt said that over the long term, milk production in Tasmania has increased, with 32 per cent growth in the past 10 years, and 63 per cent compared with 20 years ago.
The latest figures available show that in 2019-20, there were 182,000 dairy cows and 391 dairy farms in Tasmania.
To read the report, visit: https://www.dairyaustralia.com.au/industry-statistics/industry-reports/situation-and-outlook-report
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