The dairy industry is still on a high in Tasmania, with Dairy Australia's latest June Outlook Report stating that industry confidence has improved, driven by strong growth in this state.
The latest National Dairy Farmer Survey also recorded Tasmania as having the highest number of farmers expanding their businesses in Australia, with 42 per cent of Tasmanian respondents looking to expand.
Up to 90 per cent stated they had confidence in their business and up to 91 per cent reported they were profitable.
At the same time, less than half of dairy farmers across Australia were positive about the industry future, 70 per cent expected to reach operating profit but almost 50 per cent increased production since last year.
Tasmanian Farmers and Graziers Association councillor Andrew Aldridge said Tasmania was tracking significantly above the natural average, proving that the state is the best place to be a dairy farmer.
"Despite the uncertainty and volatility of the national dairy industry, Tasmania is still proving to be the jewel in the crown of the national dairy industry," he said.
"If you are in the black, you can grow, you can do things, we can expand because of our climatic and natural values."
The Outlook Report also warned of the unknown impacts of Covid-19 on the dairy industry.
"The Global Financial Crisis in 2009 saw a 12-month impact lag, so it is incredibly important that we consider that through Covid-19. We mightn't see an immediate impact but over the next 12 to 18 months we might be facing some significant pressures from inputs," Mr Aldridge said.
"I anticipate that farmers will hold to see where the market will actually go."