But the key concern for dairy producers heading into 2012 will be the increase in milk on the world market, according to Dairy Australia strategy and knowledge manager Jo Bills.

While the world stared down the barrel of another global financial crisis, dairy commodity prices went sideways, rather than down, because of continued demand from China.

"The key concern in regard to world dairy prices going into 2012 is that production is growing in some of the exporting regions, so there will be more milk around, particularly New Zealand and the United States," Ms Bills said.

"Because of what is happening in Europe, exports out of the European Union make it more risky."

Ms Bills said that as a result of this there would be some pressure on commodity prices, but the upside was the present downward pressure on the Australian dollar as a result of the United States greenback strengthening.

She said Dairy Australia's May forecast for farmgate milk prices remained reasonable.

"We had a range of between $5.10 a kilogram of milk solids to $5.50kg/MS," Ms Bills said.

"That is still achievable, but it is more likely to be at the lower end of the range."

The situation with feed is also promising, with Ms Bills saying there is plenty of homegrown feed around, although varying in quality.

This means dairyfarmers are likely to be less exposed to the feed market.

"There is plenty of access to feed grains at a reasonable price," she said.

"In terms of margins, it is a good year for consolidation in most regions, particularly in pasture-based and export-focused regions, such as South Australia."

South Australian Dairyfarmers Association president David Basham said there would be three big issues facing dairyfarmers in 2012.

"One of the biggest issues still facing us is the Murray Darling Basin Plan and where that might fall once the draft has gone through the public consultation process," he said.

"In the future, the biggest challenge is climate change and its effects but the challenge locally is United Dairy Power starting-up in the new year and farmers supplying them."

"There is some trepidation about the change, but hopefully farmers will settle in and be comfortable and continue to grow the need for milk at the Murray Bridge and Jervois plants."