Dairy in Gippsland

Gippsland dairy farmer.Dairying is spread across Gippsland, with the Baw Baw, Wellington and South Gippsland shires having very high numbers of dairy farms.

Dairying is important to the region’s wealth, as it is the biggest agricultural contributor to the local economy (see Chart 1).

Dairy farmers finished 2010/11 in a stronger financial position than previous years. The news of good returns needs to be tempered however, as many farmers needed to reduce debt incurred from the tough years prior. Many will also invest operating surplus in repairs and maintenance as well as new capital. Macalister Irrigation District and further east had near perfect growing conditions all year while west and south Gippsland were going well until  March/April when soils became the most saturated since 1996. 
 

Gippsland dairy statistics

  • Gippsland dairy farmers produce 1.9 billion litres or 23% of the national milk production.
  • The average farm is 137ha and milks 267 cows producing 134,326kg of milk solids (fat and protein).
  • 31% of dairy farms are staffed by the owner or ownership couple.
  • 53% of farms calve on a seasonal basis and the others split calve to produce milk year-round.
  • Gippsland dairying employs 6,800 people, who work either on-farm or in the processing and manufacturing sector.
  • 16 dairy companies source Gippsland milk for processing and manufacturing.
  • 30% of Gippsland dairy farms are located in the Macalister Irrigation District, 47% are in regions of high rainfall and 23% are in low rainfall zones, with someaccessing groundwater to irrigate small areas.
  • 68% of the average cow’s diet is ryegrass (85% from perennial ryegrass and 15% from annual ryegrass).
  • Grain use is at 1.4 tonnes per cow compared to 1.33 tonnes in the previous year.
  • 63 percent of farmers p\undertook some capital investment, mainly in machinery, dairy plant and fencing.

 

Chart 1: Location of dairy farms and Agricultural Commodities


Further facts were collected by Dairy Australia during its annual ‘Situation and Outlook survey’ and are available from www.dairyaustralia.com.au