Only Victoria ahead of Ireland for low 2012 dairy farming costs
A survey of dairy farming costs in six major production areas by Rabobank, the leading global agri-bank, shows Ireland had the second lowest 2012 costs, with only Victoria producing milk cheaper.
The Gippsland dairying region on the east coast of Victoria has 1,523 dairy farms which produce 22% of Australia’s milk. With only 26% of the herds having 150 cows or less, 30% of Gippsland farms produce 63% of the milk.
Dairying is easily the biggest agricultural contributor to the local economy.
In the 2012/13 season, dry conditions caused a large depletion of fodder reserves and conspired against pasture production. Also, milk prices fell 11% to $4.75/kg of milk solids (€3) and grain prices rose to $356/t of dry matter (€236).
According to Dairy Australia, net dairy farm income in Gippsland slumped to minus $59,000 (minus €39,000), down from $113,000 (€75,000) the previous year.
Earnings before interest and tax were $38,000 (€25,200), down from $211,000 (€140,000) the previous year.
