Dairy Farm Monitor reports another positive year

RESULTS from the 2021–22 Victorian Dairy Farm Monitor Project (DFMP) report show Victorian participants on average experienced the fourth highest financial returns recorded in the 16 years of the project.

Dairy Farm Monitor is a joint initiative of Agriculture Victoria and Dairy Australia, with financial and physical data gathered from participant farms in Gippsland, South-West and Northern Victoria.

Agriculture Victoria Farm Business Economist, Natalie Nelson said the average profit in 2021–22 from the 80 participant farm businesses was approximately $384,000 per farm ($1.72 per kilogram of milk solids), which was 45 per cent above the long-term average.

“This strong performance was influenced by a nine per cent increase in average milk price to $7.37 per kilogram of milk solids.

“However, the increased milk price coincided with higher input costs and supply constraints, including labour, feed and fertiliser, which impacted on the overall 2021–22 farm business margins.

“For dairy farms in the irrigation areas of the Goulburn Murray and Macalister Irrigation District, favourable seasonal conditions and lower irrigation costs assisted in strong performances,” Ms Nelson said.

Dairy Australia Lead Farm Business Data, Helen Quinn, said the results were particularly encouraging with farmers indicating an optimism for farm business returns in the coming 12 months.

“The Dairy Farm Monitor Project is a valuable source of information to the industry, with the annual reports providing comprehensive physical and financial analysis for government and industry decision-makers on the farm-level factors that contribute to profit.

“Australia-wide there are 250 participating farms, with Victoria representing the biggest cohort in the project,” said Ms Quinn.

Ms Nelson said the financial and production information collected in the report enables businesses to effectively track and compare their business performance over time.

The Dairy Farm Monitor report is available on the Agriculture Victoria website at: agriculture.vic.gov.au/dairyfarmmonitor 

Briefings on the 2021–22 Dairy Farm Monitor Report will be hosted by Dairy Australia in each of the regions in early November.