The economic performance of the South West Victoria region improved in 2018–19, according to the Dairy Farm Monitor Project.
This was driven by increased milk prices and favourable seasonal conditions.
Average earnings before income tax and return on total assets increased 47 per cent and 19 per cent on the previous year respectively yet remained below the long-term average for the region.
On average, farms maintained their herd and farm size compared to the previous year.
The improvement in seasonal conditions enabled farmers to increase their homegrown feed as a proportion of ME consumed.
The proportion increased to 68 per cent, up from 62 per cent the year before and returned to historic levels.
Farms in the top 25 per cent group (ranked according to RoTA) had higher milk production measured per cow and per hectare, and higher labour efficiency, based on cows/FTE and kg MS/FTE.
On average, total milk solids reduced by 5 per cent to 187 000 kg MS per farm, down from 196 000 kg MS the previous year.
This was higher than the 2.5 per cent reduction in milk production recorded by Dairy Australia for the South West region.
Source: Dairy Farm Monitor Project