But farmers must first survive this financial year.

The average Aussie broadacre dairy farm income in this financial year will be $62,000 compared to $76,000 in 2008-09.

The brunt of this reduction will be carried in NSW and Queensland. Victoria, Tasmania and South Australia are performing better because of improved seasonal conditions and these states will be the ones to push the increase in production in coming years.

An extra 770 million litres of milk a year will be made in Australia in five years time, assuming favourable seasons, according to the latest figures from ABARE at its Outlook conference at Canberra.

Aussie dairy producers will collect 8.9 billion litres of milk this financial year - the lowest amount since 1997-98 and five per cent less than last financial year.

This is predicted to increase to 9.7 billion litres by 2014-15.

Also in the next five years, the milk value is forecast to gain another 5c/L at the farm gate.

The Australian farm-gate milk price is forecast to average 35.5c/L in 2010-11, only "slightly" higher than this financial year.

The milk price is forecast to continue rising to 36.3c/L in 2013-14.

These prices are about 15c/L lower than three years ago when the value of milk was about 52c/L.

Australian dairy exports are projected to rise by seven per cent (year on year) to reach $2 billion in 2010-11 (in today’s money).