Victoria's dairy sector rises to the top

Agriculture Victoria has released the 2022–2023 Dairy Farm Monitor, an annual survey tracking 80 dairy farm businesses in Northern Victoria, South-West Victoria and Gippsland.

The report showed that in 2022–2023, milk price increased by 33% to $9.77 per kilogram milk solids — the highest on record in 17 years — helping to offset rising feed costs and overheads including labour.

In 2022–23, average profits across Victorian participants rose by 67% to $2.87 per kilogram of milk solids (kg MS).

“It is pleasing to see Victorian dairy farmers come out on top following a year of higher business inputs, wet conditions and flooding,” said Agriculture Victoria Sector Development and Services Executive Director Dougal Purcell.

Agriculture Victoria’s Dairy Farm Monitor project is a partnership with Dairy Australia.

Dairy Australia General Manager for Research & Innovation Greg Jarman said farmers are making multiple operational and tactical decisions on a daily, weekly and seasonal basis.

“Some of these decisions can have a lasting impact on the profitability and sustainability of their farm,” he said.

“The Dairy Farm Monitor Project is a valuable source of independent physical and financial data around a wide range of on-farm practices, equipping farmers with essential insights to inform their decision-making. This information also ensures that on-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 with the gross value of milk produced in Victoria worth $2.86 billion. 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% of Australia’s national milk production in 2022–23.

The 2022–23 Dairy Farm Monitor report is available on the Agriculture Victoria website.

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