A NEW report has found Victorian dairy farmers enjoyed one of their most profitable 12 months in the last 17 years.
The 2022-23 Dairy Farm Monitor Project found dairy farmers had a record profitable year thanks to high milk prices and carefully managed high costs.
A partnership between Dairy Australia and Agriculture Victoria, the project collects and analyses financial and production data from dryland and irrigated dairy farms in south-western Victoria, Gippsland and northern Victoria.
It tracks 80 dairy farm businesses, and participants represent a distribution of farm size, feeding systems and herd sizes.
This year’s findings revealed that milk price in 2022-23 increased by 33 per cent to $9.77 per kilogram milk solids – the highest on record in the survey’s existence.
Agriculture Victoria sector development and services executive director, Dougal Purcell, said the result would help to offset rising feed costs and overheads including labour.
“It is pleasing to see Victorian dairy farmers come out on top following a year of higher business inputs, wet conditions and flooding,” he said.
“We thank the Dairy Farm Monitor project participants for their dedicated support for this initiative, providing such valuable information to industry and government.”
But even better news was delivered for south-west dairy farmers, with earnings before interest and tax (EBIT) leading the state with $3.24 compared to the statewide average of $2.87 – the second highest on record, accounting for inflation.
Farmers use the reports to inform their business decisions, assess their business performance over time, implement substantial farm changes and assist in financial management.
Dairy Australia research and innovation general manager, Greg Jarman, said some of these decisions can have a lasting impact on the profitability and sustainability of farms, with farmers making multiple operational and tactical decisions on a daily, weekly and seasonal basis.
“The Dairy Farm Monitor Project is a valuable source of independent physical and financial data around a wide range of on farm practices,” he said.
“This information also ensures that farm consultants and industry stakeholders can use reliable, independent and useful information and resources to provide good advice to farmers.”
Valued at $2.5 billion, Victorian dairy leads the nation’s exports.
The gross value of milk produced in Victoria is worth $2.86 billion and the sector supports almost 13,000 jobs, almost half of which are in regional Victoria.
There were approximately 2773 dairy farm businesses in Victoria that produced 5.14 billion litres or 63 per cent of Australia’s national milk production in 2022-23.
