High farm land prices pose challenges for the dairy industry

The price of dairies in Victoria's high rainfall districts might be out of reach, but irrigated properties might be more affordable in the north.

Here is a 201 hectare (496 acre) dairy farm on the market for $2.2 million in a traditionally strong dairying area of northern Victoria which might appeal.

That's $4435 per acre for a 50-stand rotary dairy at Horfield, between Cohuna and Leitchville.

A similar size dairy farm in higher rainfall Gippsland with a 28 a-side swing over Herringbone dairy has been listed for around $9 million, or about $15,280/ac.

Around $3 million is the suggested price for a 22-aside double-up dairy which has been on the market at high rainfall Simpson near Colac.

The Heytesbury district dairy farm across 129ha (319 acres) was offered by Charles Stewart agencies for $9200 per acre.

Just last week leading farm lender ANZ Bank took a closer look at dairying in Australia.

While the supply of raw milk continues its long term decline, milk prices have remained strong with good prospects.

"The issue of high farmland prices remains a double edged sword in dairy regions," the bank said.

"It does make it tougher for dairy farms to expand the size of their operations, especially when they are competing with beef cattle producers, although it does also present an attractive exit operation for dairy producers who may be looking to retire."

But the bank also said - "Looking ahead, a forecast recovery in consumer consumption levels in a number of markets, combined with an easing in global supply, could well see prices head upwards again during 2024."

Charles L. King and Co. is marketing the Horfield dairy saying it offers a generous land size "and is perfect for those looking to invest or develop".

The real estate firm is also selling a highly regarded dairy farm at Gunbower.

An expressions of interest campaign has been launched for Kurrajong Park across 134 hectares (330 acres) just 3km from the Murray Valley Highway town and 45km north-west of Echuca.

It has a 24-unit swing over dairy with auto cup removers.

Expressions of interest close this week and no price has been listed.

For more information contact the agents from Charles L. King and Co, Allan Mitchell 0427 562590, Gary Wood 0408 505733 and Colin Ibbs 0427 349648.

The Horfield farm's feature is that 50-stand rotary with a 20,000-litre De Laval vat.

The farm also has four silos, a machinery shed, calf shed, crush and race facilities, as well as town water access.

The property has been completely laser-levelled with a mostly pipe and riser irrigation system serviced by two large electric irrigation pumps.

The property has two three-bedroom homes.

For more information contact Alan Mitchell from Charles L. King and Co on 0427 562590.