Victoria’s Dairy Farm Monitor Project releases 2019-20 results

United Dairyfarmers of Victoria president Paul Mumford says the Garden State’s seasonal conditions had markedly improved in the past six to nine months, leading to better results.

FOCUS DAIRY Matt and Alli Reid Matt and Alli Reid on their farm at Carlisle River Pictured: Generic dairy farm. Generic dairy cows. Milk. PICTURE: ZOE PHILLIPS

VICTORIA’S monitor farms are back in the black with an average earnings of $346,000 in 2019-20, before interest and tax.

The Dairy Farm Monitor Project confirmed that 77 out of its 80 farms achieved a profit last financial year, with an average farm net income of $243,000.

In the 2018-19 report, only 46 out of 75 farms statewide produced positive earnings before interest and tax.

Due to this patchy performance, the average net income for 2018-19 statewide was a $24,000 standardised loss.

United Dairyfarmers of Victoria president Paul Mumford said conditions had markedly improved for the sector in the past six to nine months although further gains at the farmgate were needed.

“Seasonal conditions have really turned around in 2020. Last year wasn’t great for most of Victoria, now the opposite is the case,” Mr Mumford said.

“There’s still more to be done on farmgate prices, processors can afford to offer extra there, ensuring the underlying profitability of primary producers.”

In the 2019-20 financial year, there were 3450 dairy farms in Victoria, producing 5.57 billion litres over the 12-month period.

Those figures contrast with the 2018-19 reporting period, when there were 3520 farms statewide producing 5.58 billion litres.

“There continues to be consolidation of farm numbers. That’s a trend that’s been going on for some time and needs to be addressed if we want a viable sector into the future. We’ve done a lot of work in that space but it requires government and others getting involved,” Mr Mumford said.

Authors of the 2019-20 report wrote that farm profitability had been influenced by a 17 per cent increase in the average statewide milk price to $7.15 a kilogram milk solids.

Victorian Agriculture Minister Jaclyn Symes said conditions were generally very dry for the first half of 2019-20 followed by excellent growing conditions in the second half.

“In what has been a challenging twelve months for the sector, once again our dairy farmers have achieved incredible results - this is good news for the industry as we look ahead,”Ms Symes said.

“Our dairy farmers have shown great resilience and innovation finding ways to lower their costs and increase milk production, capitalising on a 17 per cent increase in the milk price.”

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