The bushfires on Australia's east coast are hurting local dairy farmers even more than the months-long drought. The world's seventh largest exporter of dairy products is already experiencing a significant reduction in milk supply.
Australia's fire departments have been fighting bushfires on the east coast of the continent for weeks. The flames are blazing across six million hectares of land, killing both wildlife and livestock. So far, 24 people have died in the flames.
The states of New South Wales and eastern Victoria have been in a drought for three years. These states have the largest dairy farms in the country. There is currently no complete picture of the situation there. Hundreds, perhaps even thousands of cattle have fallen victim to the flames.
Australia mainly supplies countries in Asia with dairy products. These provide exports worth a good two billion euros. This makes the dairy industry Australia's fourth most important market for agricultural exports.
Even before the fire disaster, milk production had fallen to a 22-year low due to the drought. Now even the local supply is in danger. Many farmers are having great difficulty getting feed as roads are often closed.
The share prices of Australian dairy cooperatives fell by up to 10% today.
Source
HANSA Terminhandel
