Northern Victoria Dairy Farms Lead State Profitability in 2023-24
Source: DairyNews.today
Northern Victoria’s dairy farms emerged as the most profitable in the state during the 2023-24 financial year, according to the latest Dairy Farm Monitor report. The annual report, which surveyed 80 dairy farmers from northern Victoria, western Victoria, and Gippsland, reveals that average profits across Victorian dairy farms surpassed the long-term average for the fifth consecutive year.
The findings show that average profit reached $629,000, or $2.64 per kilogram of milk solids (kg MS), despite a slight reduction in milk prices. The statewide average milk price fell to $9.64/kg MS, representing a modest one percent decrease from the previous year’s high. Nonetheless, total costs for the year remained stable, and northern Victorian farmers achieved an average milk price increase to $9.93/kg MS. Additionally, total feed costs declined by four percent to $4.53/kg MS, further enhancing the region’s profitability.
Agriculture Victoria’s Farm Business Economist Program Manager, Claire Waterman, noted that the Dairy Farm Monitor participants were able to boost milk production and increase home-grown feed for their herds, even in the face of challenges like dry seasonal conditions in the state’s south-west. “We thank the Dairy Farm Monitor project participants for their dedicated support, providing valuable information to both industry and government,” she said.
The Dairy Farm Monitor Project, a collaborative effort between Agriculture Victoria and Dairy Australia, collects and analyzes financial and production data from both dry-land and irrigated dairy farms. In 2023-24, approximately 810 dairy farms in northern Victoria produced 1.55 billion litres of milk, which accounted for 29.2 percent of the state’s milk production and 18.5 percent of Australia’s total output.
Dairy Australia’s General Manager of Research and Innovation, Greg Jarman, emphasized the significance of the data gathered through the Dairy Farm Monitor Project. “The insights gained assist farmers and service providers in decision-making, while also helping Dairy Australia and the Victorian Government allocate resources effectively to support long-term profitability and sustainability within the dairy industry,” Jarman said.
The 2023-24 report highlights that profitability varied across regions, with northern Victoria leading, followed by south-west Victoria and Gippsland, which recorded their fourth and fifth highest profits, respectively. Statewide, dairy farms achieved an average EBIT of $2.64/kg MS, making it the third highest in 18 years, adjusted for inflation.
The optimism among northern Victorian farmers surpasses the state average, reflecting the region’s strong performance and outlook. Across Victoria, there were approximately 2,768 dairy farms in operation in 2023-24, producing 5.3 billion litres of milk—representing 63 percent of Australia’s national milk production.
Agriculture Victoria’s Farm Business Economist Program Manager, Claire Waterman, noted that the Dairy Farm Monitor participants were able to boost milk production and increase home-grown feed for their herds, even in the face of challenges like dry seasonal conditions in the state’s south-west. “We thank the Dairy Farm Monitor project participants for their dedicated support, providing valuable information to both industry and government,” she said.
The Dairy Farm Monitor Project, a collaborative effort between Agriculture Victoria and Dairy Australia, collects and analyzes financial and production data from both dry-land and irrigated dairy farms. In 2023-24, approximately 810 dairy farms in northern Victoria produced 1.55 billion litres of milk, which accounted for 29.2 percent of the state’s milk production and 18.5 percent of Australia’s total output.
Dairy Australia’s General Manager of Research and Innovation, Greg Jarman, emphasized the significance of the data gathered through the Dairy Farm Monitor Project. “The insights gained assist farmers and service providers in decision-making, while also helping Dairy Australia and the Victorian Government allocate resources effectively to support long-term profitability and sustainability within the dairy industry,” Jarman said.
The 2023-24 report highlights that profitability varied across regions, with northern Victoria leading, followed by south-west Victoria and Gippsland, which recorded their fourth and fifth highest profits, respectively. Statewide, dairy farms achieved an average EBIT of $2.64/kg MS, making it the third highest in 18 years, adjusted for inflation.
The optimism among northern Victorian farmers surpasses the state average, reflecting the region’s strong performance and outlook. Across Victoria, there were approximately 2,768 dairy farms in operation in 2023-24, producing 5.3 billion litres of milk—representing 63 percent of Australia’s national milk production.
