Average Victorian dairy farm profits were above the long-term average for the fifth consecutive year in 2023/24, according to the latest Dairy Farm Monitor (DFM) report.
Earnings Before Interest and Tax (EBIT) fell 8% YOY for the state, with gross farm income falling $0.33kgMS to $10.52 and average milk price was –1% YOY at $9.64kgMS. At $2.64kgMS th e2023/24 average EBIT was the third highest in the 18 years of the DFM program. Feed costs were 3% lower YOY, while overhead costs rose 1%.
Interest and lease costs increased in all regions. Many DFM participants are growing and/ or developing their businesses through additional debt. This combined with interest rate rises increased average debt servicing.
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