NORTHERN Victorian dairy farmers will lose an average 2.4c for every dollar invested in their operation this year.
That's according to the findings of a report into the season impacts of farmgate milk prices commissioned by Murray Dairy.
The findings also show that every dollar invested last year returned $1.68.
The report, compiled by Cameron Smith from Farmanco, formed part of the United Dairyfarmers' of Victoria's District Council 1, 2 and 3 drought submission to the Victorian Government.
Mr Smith used the physical and financial data from 23 farm businesses throughout the region and projections were made about the seasonal milk price as well as costs such as purchased feeds.
Of the 23 dairy farm businesses, 22 (or 96 per cent) will record a deficit, the report found.
Mr Smith said this meant that 96 per cent of the farm business would not generate enough farm income to cover the cost of production as well as personal, tax and financial expenses.
The range of income, less cash costs performance, will be from minus-$310,591 to $15,450, averaging minus-$112,790.
Thirty per cent of these businesses will also not generate an operating surplus this season, meaning that seven of the 23 businesses will not make enough money from a litre of milk to cover the cost of producing it.
Operating surpluses range from minus-$149,451 to $154,389, averaging $27,848, equal to 4.07 per cent of farm income.
Last season, the average operating surplus was $145,673 or 14.38 per cent.
Only one, or 5 per cent, of the business surveyed will generate a positive earnings before interest and tax.
Earnings before income tax range from minus-$220,745 to $58,627, with the average EBIT at minus-$76,241.
Last season, the average EBIT was $16,057.
The 23 farm businesses that provided financial information milked between 140 and 450 cows, with an average of 258.
The farms ranged from 22ha to 749ha, at an average of 229ha.
Expected production from each business was between 55,266kg and 270,054kg milk solids, with an average of 130,294kg.
