Positive fundamentals for dairy amidst challenges.

Inflation and widespread spring flooding have taken a toll on the dairy sector, but profitability remains strong.

Dairy Australia’s latest outlook report shows milk prices are, on average, higher and livestock trading conditions are good…

But Industry Insights and Analysis Manager John Droppert says rises in key input costs could outweigh the increase in gross farm income.

Rural editor Sophie Clarke caught up with him to find out what lies ahead for the sector.