Regional Round-up is a monthly newsletter providing an overview into the environmental and business conditions affecting farmers and rural businesses in the Goulburn Valley and North East Victoria.

Weather Conditions

A continuation of good rainfalls across the region has extended the quality of the autumn break.

Dairy

The continuing rains and early pasture growth have been encouraging.
The opening milk prices from processors have been released and are around $6.40 per kg of milk solids. Whilst this is better than what many were expecting there are still reports that operators continue to leave the industry, with the cost of irrigation water being the major driver for this decision.
RFCs have reported that a number of farmers are concerned how Dairy Industry Code of Conduct will affect them.
The Organic Dairy Farmers of Australia Co-operative entered voluntary administration which is causing significant financial stress for its 40 plus supplier members.

Cropping

A good start to the cropping season with terrific follow up rainfall. Many have referred to this autumn’s start being the best in 40 years. Good rains have continued but have hindered some farmers trying to get the last of their crops in the ground. In some cases, some crops have been re-sown due to being waterlogged. Barley tariffs in China are a talking point & concern for farmers.

Sheep

Sheep prices are still strong and there has been little negative feedback for this industry.

Horticulture

COVID-19 restrictions have had a severe impact on fruit markets, limiting the usual range of buyers attending the national markets and local farmer markets have not been able to open at all.
Worldwide shut downs are putting a stop to exports leading to added storage costs in the hope of borders re-opening in the near future and exports commencing again. Profitability is declining every day the fruit is stored. A number of RFCs have reported RIC loan enquiry amongst orchardists are growing as word spreads throughout the networks.

Beef

The autumn break is seen as positive with on farm dams filling, pasture growing and the early lush green spread across the countryside is bringing hope for a better year ahead. Cattle prices remain strong.

Irrigation

Good rainfall across the region has seen temp water prices continue to fall with some farmers considering their options to purchase water to carry over into the next season. The weighted average price for allocation water in the month of May was $214 with the volume traded being lower than April, driven by a lack of demand due to rain and irrigators perception that prices will go lower into the new season.