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 18th 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

2023–24

Annual report 2023–24 (PDF - 7.9 MB)

Annual report 2023–24 accessible (WORD - 5.7 MB)

The latest Dairy Farm Monitor (DFM) report highlights that Victorian dairy farm profits in 2023-24 were above the 18-year project history average, for the fifth consecutive year. Throughout the year, milk prices remained strong, with an average decrease of 1% to $9.64 per kilogram of milk solids compared to the previous year, while total costs remained stable compared to the previous year.

Overall, average farm profit across the state decreased by 8% from the previous year to $2.64 per kilogram of milk solids (or $629,000). Variable seasonal conditions across the state influenced relative performance among the regions.

2022–23

• Annual Report 2022–23 (PDF - 8.5 MB)
• Annual Report 2022–23 (WORD - 10.0 MB)

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 were reduced in 2022–23 compared to 2021–22.

2021–22

• Annual Report 2021–22 (PDF - 7.4 MB)
• Annual Report 2021–22 (WORD - 3.8 MB)

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.

2020–21

• Annual Report 2020–21 (PDF - 3.7 MB)
• Annual Report 2020–21 accessible (WORD - 2.9 MB)

In 2020–21, average farm earnings before interest and taxes (EBIT) rose to $422,000 ($1.86 per kilogram of milk solids [kg MS]). Livestock trading profit increased, fodder inventory increased, and costs decreased. Gippsland and the south west recorded close to long-term average in 2020-21, with the North offering its best result in 15 years. A decline in milk price did not deter 75 of the 80 farms from recording a positive performance.

2019–20

• Annual Report 2019–20 (PDF - 5.5 MB)
• Annual Report 2019–20 (WORD - 2.8 MB)

A challenging first six months of 2019 to 2020 was followed by improved seasonal and business conditions in the second half of 2019–20 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%improvement in milk price, EBIT increased to $346,000 per farm ($1.68/kg MS).

2018–19

• Annual Report 2018–19 (PDF - 6.0 MB)
• Annual Report 2018–19 (WORD - 3.0 MB)

It was a challenging year for the Victorian dairy industry in 2018–19 with 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% increase in milk price. On average, EBIT was $85,000 per farm, a significant decline from the previous year.

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.