The range across the region was $4.42kg/MS to $5.58kg/MS, with the average price $4.84kg/MS. This was 8 per cent down on 2015-16 and the lowest of all Victorian regions.
The report, released today, shows that home-grown feed as a percentage of metabolisable energy consumed by the average dairy herd in this region increased 11 per cent to 70 per cent last season.
The average homegrown feed consumed per milking hectare was 9.2 tonnes DM/ha compared to 2015-16 at 7.9 tonnes DM/ha.
Gippsland farmers were able to decrease their overhead costs by 5 per cent, to $2.10kg/MS, this also helped participants, on average, maintain profitability in a tight year, according to the report.
Feed costs were 46 per cent of total costs in this region last season, compared to 50 per cent in 2015-16. Feed costs last season were $2.21kg/MS. Concentrate costs were down 21 per cent to $1.21kg/MS.
The region decreased its total cost of production by 14 per cent to $4.78kg/MS (with inventory changes for livestock and feed).
Milk solids sold per hectare decreased from 890kg MS/ha to 836kg MS/ha last season. Milk production per cow ranged from 268kg/MS to 580kg/MS with an average of 486kg/MS/cow.
Farms returned an average 2.3 per cent on assets, up from 1.3 per cent in 2015-16, but there was a range between negative 6.1 per cent and 6.6 per cent. Only 52 per cent of the Gippsland farms recorded a positive return on equity last season. The average return on equity was 0.7 per cent. In 2015-16 it was negative 2.3 per cent.
Source: The Weekly Times
Link: http://www.weeklytimesnow.com.au/agribusiness/dairy/gippsland-farmgate-milk-price-is-victorias-lowest/news-story/f79e0415ff9632a28a8e5121ac97fb46
