Victorian livestock farm profits have continued to rise, a new report released today by the Andrews Labor Government reveals.
The 2015-16 Victorian Livestock Farm Monitor Report shows the financial and production performance of 68 livestock farms across Gippsland, Northern and South west Victoria have improved.
Compared to 2014-15, highlights in the report included:
- Average return on assets increased from 2.1 per cent to 2.4 per cent
- Gross farm income increased from $633 per hectare to $683 per hectare
- Return on equity increased from 1.5 per cent to 1.7 per cent
- Earnings before interest and tax increased from $133 per hectare to $157 per hectare.
The increase in profitability was largely driven by improved cattle prices. However, wool prices also rose across the board, while lamb prices were variable from region to region.
Stocking rates were slightly lower than last year, while variable wool, lamb and beef production per hectare all showed a decrease from the previous year.
Variable costs such as supplementary feed and agistment increased as a result of a second dry year, with only 560mm of rain in 2015-16 – down from the 685mm average.
Quotes attributable to Acting Minister for Agriculture Jacinta Allan
“The Livestock Farm Monitor Report helps provide benchmarks for livestock enterprises across the state and is used by government and industry to inform policy, research and service delivery.”
“The report enables livestock farmers to make objective comparisons against similar farms in their regions and helps them to identify areas of focus for future improvements to their business.”
Quotes attributable to General Manager of Agribusiness, Rural Bank and Rural Finance Andrew Smith
“The current above-average rainfall has ensured strong demand and tight supply, raising prices and supporting farm profitability across Victoria.”
“The longer term outlook for the sector remains positive as farmers head into 2017 with good cash flows and soil moisture levels, and stocks of hay and fodder to draw on across the dryer months”.
Reviewed 19 August 2020