- Published:
- Tuesday 13 October 2026
Victoria’s dairy farmers are enjoying a welcome turnaround, with a new report showing improved returns and growing confidence after a challenging season.
Minister for Agriculture Michaela Settle today released the 2025–26 Victorian Dairy Farm Monitor Project Annual Report, marking 20 years of the project.
Delivered by Agriculture Victoria and Dairy Australia, the project tracks 90 dairy farms across northern Victoria, south west Victoria and Gippsland.
The report shows 86 of the 90 participating farms recorded positive returns after a challenging 2024–25 season.
The Carroll Labor Government has backed dairy farmers with practical drought support to help them recover and prepare for future seasons.
Between September 2024 and September 2026, more than 1,200 dairy farmers accessed drought grants of up to $5,000 statewide and $10,000 in the south west.
More than 480 dairy farmers also received free expert advice to plan for and manage drought and reduce costs.
The Government also helped supply 48,000 tonnes of fodder and provided duty, fee and rates relief for farmers.
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.
Labor launched Australia's first Dairy Farm Monitor Project in 2006, helping farmers improve productivity and strengthen their businesses. This model has been replicated across Australia.
Upper Murray dairy farmer Evan Nicholas has contributed to the project for 20 years, using its data to improve his business.
Milking around 600 cows, Mr Nicholas says the project helps farmers manage costs, boost productivity and plan for the future.
More than 80 per cent of participating farmers expect their returns to improve or remain stable in 2026–27.
To read the full report, visit www.agriculture.vic.gov.au
Quotes attributable to Minister for Agriculture Michaela Settle
"Victorian Labor started the Dairy Farm Monitor Project 20 years ago because we always back our farmers and we know helping them feeds, employs and cares for our communities.”
“After some really tough seasons, Victoria's dairy farmers are bouncing back, with stronger profits and growing confidence about the year ahead.”
Quote attributable to Dairy Australia CEO Matt Shaffer
“Over the past 20 years, the Dairy Farm Monitor Project has built a valuable set of farm-level data, helping participating farmers track their performance over time and contributing to our broader understanding of farm production, profitability and emissions.”
“It’s encouraging to see improved profitability among participating farms in Southwest Victoria and Gippsland fol-lowing some challenging seasonal conditions, and we’re pleased to see participation in the project continuing to grow, from 80 farms last year to 90 this year and an expected 110 next year.”
Quote attributable to Dairy Farm Monitor participant and Upper Murray dairy farmer Evan Nicholas
“Having 20 years of data gives us a really clear picture of how our farm has changed and where we’ve improved. It helps us look at things like feed costs and production year-on-year, understand what’s working for our business and make better decisions about where we go next.”