According to Dairy Australia’s Dairy Farm Monitor NSW farm business profit increased to a decade high of $2.07kgMS, up from $1.05kgMS for the 41 participating farms. Farmers in the state’s South recorded EBIT of $2.62kgMS, while EBIT in the North averaged $1.59kgMS. For the participating farms, milk prices remained similar to previous years, rising $0.06kgMS to $8.94kgMS on average. Feed costs fell by 18.2% on average due largely to a 30.2% decrease in purchased feed and agistment costs and a general increase in feed inventory. Across the state, favourable conditions for homegrown crops and pastures meant 57% of feed being consumed from the homegrown feed base, up 6% from the year before.
There was a huge turn-around in seasonal conditions, 2020/21 started with 86.9% of the state in one of three drought categories. By the end of the year, the NSW Combined Drought Indicator (CDI) showed 94% of NSW was in either the recovery or non-drought category. Rainfall was above average across all regions of NSW with coastal parts of the state experiencing a 1 in 100-year flood during the early autumn period.