Victorian dairy farmers have bounced back, with profits surging almost 290 per cent across the state after two punishing dry years.

New data from Victoria’s 2025–26 Dairy Farm Monitor Project, released on Tuesday shows average net farm income across 90 dairy farms jumped 287 per cent, from $0.47 of milk solids in 2024–25 to $1.82/kg milk solids in 2025–26.

Average profit, measured as earnings before interest and tax, lifted from $1.46/kg milk solids to $2.81/kg milk solids, while return on total assets reached 6.5 per cent.

Gross farm income also rose 12 per cent to $10.81/kg milk solids.

The report also showed average gross farm income increased 12 per cent to $10.81/kg milk solids, reflecting improved seasonal conditions and higher milk prices.

And in a big turnaround on the previous two dry years, feed inventories increased across all three dairy regions, rising to an average 1.7 tonnes dry matter per milking cow – the highest level recorded in the past 10 years.

Australian Dairy Farmers president Ben Bennett said the report was “a testament to the industry and its resilience”.

“The figures also show Gippsland was harder hit than we realised during that time,” he said.

“In general the figures are exceedingly positive, but it needs to be remembered this is a sample of the top 75 per cent of farmers, it isn’t reflective of everyone’s experience.”

Southwest Victorian farmers had a phenomenal turnaround, with average net farm income increasing from $0.30/kg milk solids to $2.38/kg milk solids.

Average profit in the region climbed to $3.31/kg milk solids, after falling to $1.26/kg milk solids in 2024–25.

In Northern Victoria, average profit increased 26 per cent to $2.44/kg milk solids, up from $1.93/kg milk solids in 2024-25, while average net farm income increased from $1.18/kg milk solids to $1.64/kg milk solids.

The report stated though gross farm income was comparable with other dairy regions, Northern Victoria recorded higher variable costs, reflecting the region’s greater reliance on purchased fodder and irrigation water.

Gippsland had a significant improvement with average profit rising from $1.09/kg milk solids to $2.69/kg milk solids, and average net farm income improving from -$0.20/kg milk solids to $1.44/kg milk solids. Across the three regions the average milk price increased 11 per cent to $9.80/kg milk solids. Northern Victoria participants recorded the highest average milk price with an increase of 6 per cent to $9.96/kg milk solids, southwest Victoria’s milk price $9.76/kg milk solids and Gippsland $9.68/kg milk solids.

The Farm Monitor Project is a joint initiative between Dairy Australia and Agriculture Victoria and tracks 90 dairy farms across Victoria.