Number of Victorian dairy farmers declines in 2022-23 financial year

More than 200 Victorian dairy farmers left the sector last financial year, continuing a worrying decade-long trend.

More than a third of Victorian dairy farmers called it quits from the milking pit in the past decade with fresh figures highlighting entrenched decline.

New data from Dairy Food Safety Victoria confirmed there were 2774 bovine dairy licences statewide at the end of last financial year, down more than 200 from the 2984 recorded at the end of the 2021-22 reporting period.

The latest figure represents a drop of more than 36 per cent from the 2012-13 total of 4284 bovine dairy licences.

Victoria’s dairy farm numbers had been in steady decline since the early 2000s deregulation of the sector, but the 2016 clawback by Fonterra and Murray Goulburn accelerated the downward trajectory.

Source: Included

Gippsland farmer James Dillon recently retired from the dairy sector after four decades.

He managed dairies in the Northern Territory, King Island and northern Victoria before concluding his career at Ruby, near Leongatha.

“It’s only natural that farmers retire from milking. But there are far fewer becoming dairy farmers compared to when I started in the 1980s,” Mr Dillon said.

“The banks have to do more to help young people into the industry. It’s not like buying a house in the suburbs. The obstacles are getting bigger for young farmers.”

Colac region farmer Peter Delahunty is still in the dairy sector and echoed that view.

“There’s a lot to be positive about for young people looking at a career in dairy,” he said.

“But it’s difficult to get your foot in the door. The banks do have a responsibility to ensure sustainable ways to get young farmers into the industry.”

Former United Dairyfarmers of Victoria president Doug Chant said Australian supermarkets had undervalued milk for too long.

He said the dollar-a-litre decade eroded profitability in the sector, and the 2016 clawback exacerbated financial strain at the farmgate.

“At the end of the day, people are still paying a pittance for milk,” Mr Chant said.

Terang region farmer John McConnell said Australia’s milk pool expanded in the soldier settlement period of the 1950s and 60s.

But the end of the dairy co-operative era with Bonlac, then Murray Goulburn, had long-term consequences.

“The soldier settlement period split up the huge farms of the pre-war period. Now, there’s a lot of consolidation with smaller farms being joined up together. So we’re back to where we started, in a way,” Mr McConnell said.