However, dairy farmers argue this might not suffice to rescue the ailing industry.

Why is Australia’s dairy industry facing challenges?

In May, Kevin and Doug Schlenert lost their dairy production facilities and 70 percent of their herd to floods on the mid-north coast of NSW.

“I don’t know if I can bounce back from this. I really don’t know.”

Dairy Australia reported that fewer than two-thirds of businesses expect to achieve an operating profit, with more than half predicting profits lower than the average of the past five years.

Ben Bennett, president of the non-profit Australian Dairy Farmers, is concerned about the industry’s future. Source: Supplied / Australian Dairy Farmers

Ben Bennett, a dairy farmer in south-west Victoria and president of Australian Dairy Farmers, which represents dairy farmers across Australia, said he is extremely concerned about the future of the dairy industry.

“And it’s going to get a lot worse too as we enter winter.”

Prices range between $8.60 to $9.20 a kilo, up slightly on last year, but a number of industry groups said farmers were hoping for more.

Are dairy prices increasing in Australia?

At the peak of the cycle, Harvey said prices increased by 25 per cent for milk and cheese.

“It can be a little bit complex, but ultimately it’s about the global price of milk that will ultimately set the direction of pricing for dairy products and farm gate milk price.”