Victorian dairy farms bounce back after tough season
A new report from the 20-year-old Dairy Farm Monitor Project shows 86 of 90 participating dairy farms made positive returns in 2025–26.
Victoria's dairy farmers have had a better year after a tough 2024–25 season, according to a new report.
The 2025–26 Victorian Dairy Farm Monitor Project Annual Report was released on 13 October by Agriculture Minister Michaela Settle. This year marks 20 years of the project.
What the report found
The project, run by Agriculture Victoria and Dairy Australia, tracks 90 dairy farms across northern Victoria, south west Victoria and Gippsland.
The report shows 86 of the 90 participating farms recorded positive returns. More than 80 per cent of participating farmers expect their returns to improve or stay stable in 2026–27.
According to the release, better conditions have helped farmers recover from drought, rebuild feed reserves and increase milk production. South west Victoria recorded the state's biggest improvement in dairy farm profitability.
Drought support
The government says that between September 2024 and September 2026:
- more than 1,200 dairy farmers accessed drought grants of up to $5,000 statewide, or $10,000 in the south west
- more than 480 dairy farmers received free expert advice to plan for and manage drought and reduce costs
- it helped supply 48,000 tonnes of fodder and provided duty, fee and rates relief.
Twenty years of data
Dairy Australia chief executive Matt Shaffer said participation is growing, from 80 farms last year to 90 this year and an expected 110 next year.
Upper Murray farmer Evan Nicholas, who milks around 600 cows, has been part of the project for all 20 years. "Having 20 years of data gives us a really clear picture of how our farm has changed and where we've improved," he said.
Read the full report: 2025–26 Dairy Farm Monitor Project Annual Report (PDF), or see past reports on Agriculture Victoria's Dairy Farm Monitor Project page.
Sources: “Victorian Dairy Farmers Rebound in Milestone Year”, Victorian Government media release, 13 October 2026; Agriculture Victoria, Dairy Farm Monitor Project. Adapted from “Victorian Dairy Farmers Rebound in Milestone Year”, Victorian Government media release, 13 October 2026. © Copyright State Government of Victoria, used under a Creative Commons Attribution 4.0 International licence; this version has been edited and shortened, and party-political content removed. Illustrations: The Dosage.