Victorian livestock farm profitability increased in the past financial year according to the latest Livestock Farm Monitor Report.
Released today by the Minister for Agriculture, Jaala Pulford, the report analyses the financial performance of 75 farms in the state’s key livestock regions of South West Victoria, Gippsland and Northern Victoria.
The 2014-15 farm profitability results are the second highest in the Livestock Farm Monitor Report six year history.
The increase in profitability was mostly due to improved commodity prices, particularly in beef markets. Stocking rates were also slightly higher and per hectare, there was an increase in beef, lamb and wool production.
While the overall result was positive, lower than average rainfall in some parts of the state meant some farmers had spent more on supplementary feed and agistment than in previous years and this had negatively affected their return on assets.
Compared to 2013-14, highlights in this year’s report included an increase in:
- Average return on assets from 1.8 per cent to 2.1 per cent
- Gross farm income from $569 per hectare to $633 per hectare
- Return on equity from 0.6 per cent to 1.5 per cent
- Earnings before interest and tax (EBIT) from $42 per hectares to $133 per hectare
Now in its sixth year, but with data dating back to 1970, the report’s current format gives livestock farmers the opportunity to make objective comparisons against similar farms in their own region, potentially using the information to improve the productivity and profitability of their business.
The 2014-15 Livestock Farm Monitor Project Report can be found at
Quotes attributable to the Minister for Agriculture, Jaala Pulford
“These strong profit results provide further proof of the significant contribution that our primary producers make towards Victoria’s economy.”
“Here at home and around the world, Victoria’s red meat industry is renowned for its quality and in 2014-15, meat was the state’s highest valued agricultural export, worth $3.1 billion to the state’s economy.”
“The Andrews Labor Government is putting agriculture at the heart of Victoria’s economic development so that our farmers and industries can grow and prosper from paddock to port.”
Quotes attributable to General Manager Agribusiness for Rural Bank and Rural Finance, Andrew Smith
“Improvements in the price of wool, lamb and beef were a boost to farm income in 2014-15 and this trend looks set to continue.”
“Additionally, the report showed that the top 20 per cent of farmers demonstrated their ability to manage feed and stock numbers well in what was a dry year.”
Reviewed 19 August 2020