Victorian dairy farms: Profits lift in 2020-21

Most dairy farmers across Victoria enjoyed their best financial year in some time during 2020-21, with average profits increasing.

Despite coronavirus hitting the Australian economy, the dairy industry had a surprisingly successful 2020-21 financial year.

Dairy farmers across Victoria have enjoyed the best financial returns in six years, new analysis of the sector shows.

Victorian Agriculture Minister Mary-Anne Thomas released the 2020-21 Dairy Farm Monitor report today, which outlined the progress of 80 farms statewide.

The government report estimated there were more than 3000 dairy farms in Victoria last financial year.

During that 12 month period, those farms produced 5.65 billion litres or 64 per cent of Australia’s national milk production.

While average dairy farm profits were up across most of the state, dairy farmers in Victoria’s north posted the best results, taking advantage of favourable seasonal conditions to record the highest profits the region has seen for 15 years.

“This latest report highlights the fantastic year our producers had,” Ms Thomas said.

“More importantly, it provides them with valuable data to drive investments in the future of their business so they are set up for success for years to come.”

The report confirmed that south west Victoria and Gippsland mostly received above-average rainfall in 2020-21, with average rainfall received in some parts.

In 2020-21, profit was achieved on nearly all farm businesses — or 75 of the 80 participants.

Average earnings before interest and tax rose from $346,000 in 2019-20 to $422,000 last financial year while average net farm income jumped from $243,000 to $330,000 over the same surveyed period.

Dairy Australia managing director David Nation said 2020-21 was one of the best financial years for farmers in some time.

“The project, which is now in its 15th year, provides high-quality farm performance data which underpins farm business management tools, such as DairyBase and the new Farm Business Snapshot tool,” he said.