Primary industries are a vital part of south-west Victoria’s economy.  In the 2006 Agricultural Census, 81 percent of agricultural land in the region was under grazing, 10 percent under crop and 1.4 percent under commercial forestry (Barwon and Western Victorian statistical divisions).

The dairy, beef, wool and lamb industries are all represented in the south-west, with around one third of the Victorian stock numbers of dairy, beef and sheep resident in the region (see Table 1).

Table 1.  Livestock types, number and percent of Victorian herd*

*2006 Agricultural Census for the Barwon and Western Victoria statistical areas:

Farming is the biggest industry in the region and accounts for more than 15 per cent of the total workforce and indirectly it generates a multiple number of jobs in the service industries.

Dairying generates $2 billion a year for south-west Victoria with the highest concentration of dairy farms in the southern areas of the region.  The dairy industry delivers 50 per cent of the region’s exports, and accounts for about 23 percent of the gross domestic product for the region (Dairy 2007: Situation and Outlook, Dairy Australia).

The industry directly employs nearly 6000 people and indirectly generates almost double that number of jobs.  Dairying is responsible for about half the region’s gross domestic product and before value-adding in factories these products are worth about $1 million.

Sheep, beef cattle and grain farming are also huge contributors to the region, accounting for almost 10 per cent of the working population.  There are nearly 6000 people directly employed in these sectors.

The Australian Bureau of Statistics says sheep and lamb numbers have dropped to their lowest level in more than 80 years due to many areas in Australia experiencing a prolonged drought.

The Southern Grampians area of south-west Victoria has long ridden on the back of the wool industry and despite a decline in numbers on a local level remains a major player in the industry.  Sales of sheep remain strong in the region.

Cropping has also witnessed a drought-led decline in production in the south-west but even more so in other parts of Australia.  Changes in climate have opened up new options for cropping and the region’s relatively strong rainfall could see it reap further benefits.

There are suggestions that more cropping operations will be established further south in the region if the projected impacts of climate change eventuate.  Already there are new cropping options happening in the region with many enterprises diversifying their income base over the past 10 years.

Timber plantations have emerged during the past decade as a major growth industry in the south-west.  Former agriculture properties have been converted to plantation farming and the industry is keen to develop further land in the region.

Fishing is another multi-million dollar industry for the region.  Deep-sea fishing is centred largely at Portland, Victoria’s second largest port. The fishing precinct in Portland has undergone a major redevelopment.  There are further fishing vessels at Port Fairy and Warrnambool.

The menu to your left provides information for each of these key industries at enterprise level on:-

• What does climate change mean for primary producers in south-west Victoria
• Possible impacts and opportunities
• How can primary producers adapt