CONFIDENCE is building in the dairy industry following recent successful stud sales.

Leitchville-based Ramaya Jerseys recently averaged $1664 for 102 spring-calved cows and $1974 for 23 autumn-calving cows.

And agents have reported good results at quality commercial Holstein sales, with cattle selling for more than $1300 and, occasionally, topping $1500.

Mount Gambier agent Phil Wood, of P&L Livestock, said he had been chasing "good" cows for local clients as well as Bovine Johne's score-seven or above cattle eligible for sale to Queensland.

"You can't get good cows," he said. "Everyone is anticipating the milk price will come good in the new year."

South Australia's dairy cow pool is limited due to rules requiring BJD tests for interstate cattle.

Mr Wood also said culling of "bottom-end" cows and a focus on export heifer sales had resulted in a shortage of quality cattle.

And, with prices hovering around $1500 a head locally for quality Holstein cows and only modest increases in the milk price, Mr Wood said some people were worried about finding money for extra animals.

"Some people on better prices need milk in the vat," he said. "But with the people out there struggling to pay bills, it is hard to see where it is all coming from."

Dairy Livestock Services auctioneer Brian Leslie said there was a "shortage" of quality dairy cows.

Pointing to the improved season and increased availability of water in the north, Mr Leslie said farmers were choosing to milk more cows as, in many cases, the cost of production had decreased. "There's a little bit more feed, (some) have decided to milk more cows because they can feed them," he said.

Landmark northern Victoria dairy co-ordinator, Peter Mathieson, said cows had been harder to find. "It is certainly a lot harder to source cows than it was six months ago, (but) there are still cows out there for sale," he said.

"There is a lot more confidence (and) it is making a difference with a bit more water."