TASMANIAN milk production reached record levels, last financial year, up 10 per cent on the previous 12 months.
DairyTas chief executive Mark Smith said production hit a record 886 million litres in 2014-15 - a 10.1% increase over the previous year.
He said production had risen 286Ml in 10 years.
"We are about a year behind our 2018 target of 1,150Ml - but overall things are tracking well," Mr Smith said.
"This growth is on the back of some good seasonal conditions, so it remains to be seen how production will fare with a more average season and a slightly lower milk price."
Mr Smith said DairyTas expected a five per cent increase, in the 2016 season.
"Recent colder conditions have impacted on pasture growth and feed supply is getting tighter in some regions of the state, so we need a warmer early spring to get the 2016 season off to a good start," Mr Smith said.
"On the other hand continued cold temperatures will hold back production and could dampen our production expectations for the coming year.
"The lower milk price will affect farm operations and some dairy farmers will take a more conservative approach into the season especially as global commodity prices remain depressed and have been slow to turnaround."
Mr Smith said farm numbers had remained reasonably static over recent years, with new conversion farms starting up and some going out of dairy.
"This is in stark contrast to the national picture where there continues to be a declining number of dairy farms," he said.
DairyTas was expecting to see another five to 10 new farms starting in the coming season, which would help to boost production beyond 900ML in 2016.
Mr Smith said there was continuing volatility, underpinning global dairy markets, as supply changes had an impact on the industry.
"This is clearly evident with the ABARES farm income trend data below, which also highlights how our dairy industry out performs the national average," Mr Smith said.
