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Abstract

The dairy industry in northern Victoria has been subject to rapid change in recent years, resulting in great diversity in the irrigated dairy farming systems in the region. Continuing analysis is needed of the various farming systems that may be viable in the future. This study examined possible development options for different farm systems to enable them to maintain financial viability. Four case studies, representative of different farm systems, were used. All four had options to combat the effects of declining terms of trade. However, the option most suitable for one case study may be unsuitable for another farm due to differences in resources, goals or skills. A key outcome of the study was the development of a robust approach to continually analyse farm physical and economic performance in a rapidly changing environment. Importantly, options can be analysed, enabling business managers to evaluate risks and reach informed decisions on investments.

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