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Excellent Returns

Business Performance

The business performance of dairy operations in the Murray Dairy region, as with any business sector, are variable and highly dependent on the ability and skill of the key decision makers. However, the combination of affordable land prices, access to reliable irrigation water, high dry matter utilisation per hectare and the proximity to large grain and fodder growing areas provides the opportunity to achieve good returns on the investment made.

Milk Price

Milk price has a major influence on profitability and the following table shows the the average milk price delivered by Murray Goulburn which is the largest milk company in Northern Victoria for the “average” milk supply for each year since 1995/96.

YEAR	$ / kg BUTTERFAT	$/kg MILK SOLIDS
1995/96	7.86	4.37
1996/97	6.35	3.53
1997/98	6.24	3.47
1998/99	6.50	3.61
1999/00	5.82	3.23
2000/01	7.41	4.12
2001/02	8.10	4.50
2002/03	6.03	3.35
2003/04	6.45	3.58
2004/05	7.76	4.31
2005/06	8.03	4.43
2006/07 est	7.25	4.00
AVERAGE (95-06)	6.96	3.86