Victorian dairy farmer numbers drop ahead of the 2020-21 season

During the past decade, a growing number of Victorian dairy farmers have been leaving the sector. But new figures show the trend is accelerating at a dizzying pace.

The long-term average in Victorian dairy farmers leaving the sector hovers around four per cent.

NEARLY triple the usual number of Victorian dairy farmers have left the sector last season, a new report has detailed.

Dairy Australia’s latest situation and outlook report revealed that preliminary data suggests about 11 per cent of dairy farmers chose not to renew their licence for the 2020/21 season.

The long-term average has hovered around the four per cent mark and is higher than the rate of exits in the 2018-19 season.

The report noted that national date was not yet available but that “anecdotal reports suggest elevated figures are likely to be mirrored in other regions.”

“Exits can represent both consolidations and the removal of productive capacity, however, given these exit levels, there is undoubtedly an upper limit on milk production growth for this and future seasons,” the report said.

United Dairyfarmers of Victoria president Paul Mumford said while seasonal conditions had been favourable so far in the 2020-21 season, it was important to acknowledge that it was off the back of a string of underwhelming years.

“There are long-term challenges in the sector, anyone connected with dairy knows that,” Mr Mumford said.

“We’ve got to be careful when there’s a good season, like this season is, that we remain mindful that work needs to be done to stabilise farmer numbers, encourage more into the industry and work on the existing challenges we face.”

MORE

IS YOUR CHOCOLATE BAR AUSTRALIAN MADE?

COUNTRY OF ORIGIN LABELLING IN FAST FOOD

APPLICATIONS SOAR FOR AUSTRALIAN MADE CERTIFICATION