The latest Dairy Farm Monitor Project report for Victoria shows average profit was $1.46kgMS in 2024/25, down 45% YOY and falling short of the long-term average of $1.61kgMS. The average milk price fell 8% YOY for the period, but was still the fifth highest since the Project commenced. Despite falling average milk prices and lower profits, 86% of the Victorian farms surveyed recorded positive returns.

Farm profits varied across the state with Northern Vic dairy farmers the most profitable, earning $1.93kgMS as irrigation secured high-quality feed throughout the season. Average profit fell to $1.09kgMS in Gippsland for the period 57% below the long-term average with increases in feed costs and falling milk prices. In the state’s South West, average profits fell by 48% to $1.26kgMS due to lower milk price, reduced feed inventory reserves and higher cash costs.   

Looking ahead, most dairy farmers across Victoria expect business returns to improve in 2025/26 with survey participants in Gippsland and Northern Vic more optimistic than farmers in SW Victoria. Farmers identified seasonal conditions as a key issue in th