A new report has found Victorian dairy farm profits in 2023-24 were above the long-term average for the fifth consecutive year.

The 2023-2024 Dairy Farm Monitor is an annual survey tracking 80 dairy farm businesses statewide.

In 2023-2024, average profit was strong at $629,000 or $2.64 per kilograms of milk solids.

The varied seasonal conditions across the state for 2023-24 influenced performance and costs among the regions.

Average milk price fell slightly to $9.64 per kilogram milk solids – a one per cent decrease on the previous

year’s very high price – while total costs for the 2023-24 period remained stable.

Agriculture Victoria farm business economists program manager, Claire Waterman said Dairy Farm Monitor participants produced more milk across the state and increased homegrown feed production for their herds, despite some challenges including dry seasonal conditions in the south west and a slightly lower milk price than last year.

“We thank the Dairy Farm Monitor project participants for their dedicated support to this initiative, providing such valuable information to industry and government,” she said.

Dairy Farm Monitor is a partnership with Dairy Australia, collecting and analysing financial and production data from dryland and irrigated dairy farms in south-western Victoria, Gippsland and northern Victoria.

Dairy Australia general manager research and innovation, Greg Jarman said the Dairy Farm Monitor Project provides vital insight into the factors affecting the profitability and sustainability of dairy farms.

“The data and insights gained from the project assist farmers and service providers in decision making and support Dairy Australia and the Victorian Government by providing independent and reliable information to inform investment and resource allocation to priority areas,” he said.

“This ensures we maintain our focus on the projects and activities that will have the greatest impact on the long-term profitability and sustainability of the dairy industry.”

The 80 project participants represented a distribution of farm size, feeding systems and herd sizes.

There were approximately 2768 dairy farm businesses in Victoria that produced 5.3 billion litres or 63 per cent of Australia’s national milk production in 2023-24.

The 2023-24 Dairy Farm Monitor report is available on the Agriculture Victoria website agriculture.vic.gov.au/dairyfarmmonitor