AN extra 85 million litres of milk will be needed in the next two years if Western Australian dairy farmers hope to continue supplying domestic and export markets.
Speaking at the Dairy Invest forum, dairy consultant, Glenys Hough, says WA milk production has been declining since 2000, dropping 89 million litres since 2002-03.
At the same time, domestic consumption and export demand is increasing with the demand especially high for value-added products.
"Finally we have national parity with the price of milk after seeing significant rises," Ms Hough says.
"However, 85 million additional litres of milk will be required within the next two years and even a greater amount will be needed in the longer term."
Existing farmers and new investors will be needed to reach the target.
"(An extra) 85 million litres, at around 6000 litres per cow per annum, equates to around 14,167 additional cows," Ms Hough says.
"This is an investment of about $113,156 million which is not in our current supply base, so we are seeking outside investors."
Source: Farm Weekly