THE number of dairy cattle sold for export is expected to slow as farmers hold on to stock due to the improved milk price and season.

Exporters have had to "slightly" increase the price paid for dairy cattle to remain competitive with a strengthening domestic market in the past year.

And the supply pool of dairy cattle is expected to shrink further as farmers recoup past losses by increasing milk production this season.

Austrex export manager Wylie Wettenhall said a strong global push for protein in the developing world was behind the demand for dairy products, but he admitted finding animals to meet this market had become harder.

"With the demand that is upon us at the moment, supply of available heifers that suit the standards for live export are becoming hard to find," Mr Wettenhall said.

"The rising milk price is also placing a lot of pressure on the exporter's supply as dairy farmers will now look to hold on to some of their animals as replacements to go back into the milking herd."

Mr Wettenhall said animals for export were now "being taken a little younger and at the same money."

According to Dairy Australia, live dairy exports peaked in March with 13,492 head. It was the highest month during the 12 months to April, which saw a total of 92,906 dairy cows exported.

Landmark Global Exports procurement manager Struan Pearce said "with a sniff" of a good milk price, farmers often replaced export heifers with milking cows.

"A lot of people are saying it's going to get short, but we don't seem to have any problems sourcing them," Mr Pearce said.

In the domestic market, agents across Victoria reported stronger prices.

Dairy Livestock Services agent Andrew Mackie said on average, dairy cows were selling for $500 to $600 more than this time last year - up to $1000 more for the best quality animals.

Registered Holsteins sold to a top of $5400 and averaged $2286 for 56 cows and joined heifers at the Kaylin Park dispersal sale at Mt Eccles in South Gippsland on Monday.

But it is not just the black and white breed enjoying a boost in values.

Stewart Nash McVilly Charles manager Alister Nash said 82 commercial April-May calving Jersey cows averaged $1379 at Camperdown last week.

Jerseys topped at $2700 twice, while 24 Holsteins averaged $1327 and sold to a $2150 top.

Elders Dairy specialist Bernie Teasdale said dairy cattle demand was back to where it had been before the milk price dropped 18 months ago.

"We can't find enough cattle to fill local orders, obviously the export job is the same too," he said.