The regional dairy research body for this area, WestVic Dairy, says the region’s dairy industry is booming and was now worth nearly $5 billion to the regional economy - and still expanding.

The region encompasses the high rainfall region running west from Geelong through to Mt Gambier in South Australia and including the major regional cities of Warrnambool, Colac and Mt Gambier.

The northern irrigation region of Victoria and adjoining parts of the southern Riverina in NSW has for some years held the title as the country’s largest milk producer, but that has suffered over the last few years due to drought and the limited availability of irrigation water.

WestVic Dairy says the latest figures confirm its status as the number one dairy region, with predictions that more of the region’s agricultural land will be converted to dairy farming.

WestVic Dairy’s chairman Roma Britnell said the region’s $400 million jump in farm gate milk prices over the last year speak for themselves.

She also noted the multiplier effect that had through milk processors and the many ancillary industries who all derived a significant proportion of their income form dairying, from vets and feed merchants to accountants and fencing contractors,

Even so Mrs Britnell warned that dairy farmers faced significantly higher costs for essentials including fuel, fertiliser and feedstuffs.

An analysis of national economic data by WestVic Dairy and Deakin University shows farm gate milk values account for 15 per cent of total economic activity for the region, a figure that doubled after the raw milk was processed by factories operating within the region.