THE WA dairy industry outlook remains positive, despite a milk oversupply and increased global competition.
That's the message from speakers at the annual WAFarmers dairy conference held in Busselton last week.
The conference brought together a mix of suppliers, processors and consultants from the industry to explore new opportunities and understand the challenges currently facing the industry.
As part of the conference the WAFarmers dairy council also held its annual general meeting which saw Brunswick dairy farmer Michael Partridge take over as president from Phil Depiazzi who stepped down after four years in the role.
Ian Noakes was nominated for the role of senior vice president, while Paul Ieraci was re-elected to the position of vice president.
In her opening address, Forrest MP Nola Marino called on the industry to develop a strong marketing campaign to promote WA milk.
"We can simply know the problems or work towards the potential solutions," she said.
"That's the challenge we face today in developing what those solutions might be and not only how we get through this time but how we position ourselves so in 10 or 20 years we aren't having the same discussion.
She also took aim at large supermarkets during her address.
"There is a reason why dairy is at the back of the supermarket - people have to walk to the back and the supermarkets know that there will be a lot of impulse buys along the way, but it is our product that gets customers through the door.
"Considering that 93pc of the milk produced in this State is consumed here, I am surprised and disappointed the supermarkets are not here today."
Australian Dairy Farmers (ADF) interim president David Basham delivered an update on the status of the Australian and WA dairy industries.
He said while 2016 had so far presented some difficulties for dairy farmers, there were encouraging signs for the future if the industry could collaborate better and get involved.
"I haven't seen this level of disquiet in the industry and there is a lot of concern from dairy farmers on whether they can survive this," Mr Basham said.
"However, there are signs globally that the price may have bottomed out and the price has remained relatively stable.
"The industry does go through these cycles since deregulation but the cycles have much greater movement.
"While the long-term trend is a nice straight line over a five-year period, prices will be well above one year, two years significantly below and two on par with production.
"Farmers can't cope with extreme highs and lows - we need a better pricing system."
Mr Basham said due to ACCC legislation, conversations about pricing were "difficult to have".
'"Anyone looking in from the outside would say get the three largest manufacturers in a room to talk about this, but it is really difficult to have these conversations without raising concerns about collusion."
Mr Basham also expressed concern that with an expected downturn in milk production, it also meant there would be a downturn in research and development in the industry due to the R&D levy system.
"We need to look at how we get new technology available on farm as that's where the productivity gains are," he said.
"If Australia has laws to block the use of these technologies, our competitors will take them up, it will be sold overseas and we will be even further behind.
"We need to have conversations with processors, retailers and consumer to promote the benefits of those products and it is in best interest of the Australian dairy industry to embrace those products."
This year, milk production in WA grew by 7 per cent, up on 5.5pc from last year to 390 million litres.
