By Laura Poole

A demonstration dairy farm in south west Victoria is losing $80,000 a year.

DemoDairy, at Terang near Warrnambool, was set up as a best practice example for other farmers but it’s ended up losing money because of low milk prices, high stocking rates and the cost of inputs.

Dairy Australia is paying consultant Paul Groves to bring the farm back to profitability.

“The board made that decision to make it an example to others and to show that year-in, year-out this business should be able to make money and that’s is the plan,” he said.

“It will make money, with what isn’t a fantastic milk price at the moment. We can still get back to make a profit if we manage it well and set the right production and profit targets.”