VICTORIAN dairy farmers enjoyed one of their most profitable 12 months in the last 17 years, according to a new report.
Agriculture Victoria recently released the 2022-2023 Dairy Farm Monitor, an annual survey tracking 80 dairy farm businesses statewide.
Agriculture Victoria sector development and services executive director Dougal Purcell said the report showed that in 2022-2023, the milk price increased by 33 per cent to $9.77 per kilogram milk solids – the highest on record in 17 years – helping to offset rising feed costs and overheads including labour.
“It is pleasing to see Victorian dairy farmers come out on top following a year of higher business inputs, wet conditions and flooding,” Mr Purcell said.
But Oxley Flats dairy farmer Trevor Hourigan said while milk prices are up, so too are costs, which cut into the bottom line.
“Prices on milk at the moment are exceptional for local dairy farmers, however, recent production cost increases have gone through the roof which does offset overall profit,” he said.
“Milk prices have been the best in years but added expenses are all relative to costs.”
Over the last three years, urea went from $400 per tonne to $1800 per tonne along with Roundup pricing from $130 to $360 for a 20 litre drum.
“The costs of chemicals and fertilisers have also been a contributing factor with added strain to overall expenses,” Mr Hourigan said.
“Despite the added costs, local dairy farmers are still in a strong position but I don’t believe it has been the best in the last 17 years due to current costings.”
Dairy Australia, general manager for research and 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 and 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 per cent of Australia’s national milk production in 2022-23.
