Many farmers' response to the present economic climate is to seriously consider expansion and despite the huge uncertainty surrounding milk prices, there are still some positives. Derek Gardner from Promar puts his case. Predictions would indicate anacceleration in the rate of farmers leaving the industry coupled with an increase in average herd size and yield per cow for those remaining. Promar's own estimates predict that by 2012 the average dairy farm wilt be producing nearly twice as much milk as it does today. This growth sounds impressive, but unless the extra milk is produced profitably all expansion will achieve is an acceleration in the financial decline as farmers lose money on more litres.
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