Dairy Farm Monitor Project
The Dairy Farm Monitor Project is a comprehensive financial and production analysis of 80 Victorian dairy farm businesses in Northern Victoria, South-West Victoria and Gippsland.
The project is a collaboration between Agriculture Victoria and Dairy Australia and has been completed for the 17th consecutive year.
Reports inform government and industry decision-makers on the farm-level factors that contribute to profit and the information helps shape policy design, research themes and extension programs.
The results and trends reported need to be interpreted carefully as participant farms might not be representative of the industry or region and participant farms differ every year.
Industry reports 2022 to 2023
The latest data from the Dairy Farm Monitor (DFM) project shows average profit was the highest in the 17 years of the project (accounting for inflation). The high milk price lessened the impacts of large increases in input costs resulting in strong profits in 2022-23.
In 2022-23, average profits across Victorian participants rose by 67% to $2.87 per kilogram of milk solids (kg MS). Prices offered for milk supply increased on average by 33% and were the highest on record (accounting for inflation). Livestock trading profits reflected the type of livestock sold and the timing of sales as market prices declined sharply in the second half of the financial year.
Increased costs, most notably for purchased feed, were accompanied by general increases in costs across all categories. The widespread October flood event with subsequent storms in Northern Victoria put greater pressure on sourcing quality feeds at higher prices. South West Victoria and Gippsland managed wetter and drier (than typical) conditions for other portions of the year. Statewide, homegrown feed quality and quantity produced was reduced in 2022-23 compared to 2021-22.
| Region | Overview report |
|---|---|
| Victoria | |
| Northern Victoria | Northern Victoria overview (PDF - 1.8 MB)
Northern Victoria overview (WORD - 203.2 KB) |
| South west Victoria | |
| Gippsland |
2021 to 2022
The 2021-22 year was another positive one for the Victorian dairy industry. Average profit was the fourth highest in the 16 years of the project (accounting for inflation), reflecting the strong performance of DFM participants and was lower than the previous year’s high.
The strong performance in 2021-22 was influenced by a 9% increase in average milk price to $7.37/kg MS. However, the increased milk price coincided with higher input costs and supply constraints, including labour, feed and fertiliser, which impacted the overall 2021–22 farm business margins.
| Region | Overview report |
|---|---|
Victoria | |
Northern Victoria | |
South west Victoria | |
Gippsland |
2019 to 2020
A challenging first six months of 2019 to 2020 was followed by improved seasonal and business conditions in the second half of 2019 to 2020 to lift performance across Victoria’s dairy regions compared to the previous year.
Dairy farmers were able to lower their costs and with a 17 per cent improvement in milk price, EBIT increased to $346,000 per farm ($1.68/kg MS).
| Region | Overview report |
|---|---|
Victoria | |
Northern Victoria | |
South west Victoria | |
Gippsland |
2018 to 2019
It was a challenging year for the Victorian dairy industry in 2018 to 2019 wirth mixed performance across the regions.
Profit was constrained by continued dry seasonal conditions and high input costs, particularly in irrigation water, grain and fodder.
These costs were only partially offset by a 6 per cent increase in milk price. On average, EBIT was $85,000 per farm, a significant decline from the previous year.
| Region | Overview report |
|---|---|
Victoria | |
Northern Victoria | |
South west Victoria | |
Gippsland |
For earlier Dairy Farm Monitor Project annual reports please contact the team at fmp.victoria@agriculture.vic.gov.au or visit the Dairy Australia – Dairy Farm Monitor Project website.