Discussion: Water

Must be lack of money. With 50% on the goulburn and I think almost 60 on the Murray thats better than the past few years. With the temporary price down to less than $200 that is cheap compared with the past few years as well. The problem is the low milk price. Dairy farmers have probably decided to grow what they can and sell any cattle they can't feed with their own feed.

You could say it's not lack of money any more, as the milk price has improved over the last couple of months. It more stems back to the time that dairy cockies had to make decisions about were their feed for the cows was going to come from this summer. A couple of months ago, there was no money in milk, and there wasn't as much water allocated, so they put a lot of there funds into securing feed from hay, that was in plentiful supply

Yes, the production decisions were locked in when the milk price was low. The story I heard from the dairy cockies I chatted with was that they would produce their own feed.