Booming business for Victorian livestock producers
Livestock producers in Victoria are experiencing some of the finest equity the industry has seen in nearly two decades.
Sam Henty, an economist at the Agriculture Victoria Farm Business, said the majority of farm businesses participating in relevant surveys secured profits for 2020-21 accounts.
“The 2020-21 project results identified strong red meat prices and good seasonal conditions helped keep farm incomes and stocking rates high."
“Sheep and cattle producers are using the favourable conditions to prepare for future challenges, such as climate change, by investing in new or upgrading machinery, repaying debt and applying capital fertiliser to pastures.”
It was a particularly strong window for regions in Victoria's South-West.
Accounts showed stocking rates in the region reached the second-highest level recorded in history.
Northern Victorian based farmers also enjoyed significant booms, doubling the profit in their most recent year of operations compared to the previous year and recorded the highest average gross farm income in the history of the project for the region.
Sizeable rainfall in the East and Central Gippsland areas resulted in lower variable costs due to a lack of demand regarding supplementary feed.
It was the highest level of participation seen in the project - facilitated to gather data and statistics on the industry - in 12 years.