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Agriculture and irrigation in Victoria

Victoria is Australia's largest producer of irrigated food and fibre products. Irrigated agriculture is vital to Victoria’s communities. In 2022–23, there were 21,300 farm businesses in Victoria. Together, they cover 50% of Victoria’s total land area. Agriculture sustains rural jobs and produces food for all Australians as well as for export overseas.

It’s so big that. in 2021–22 Victoria’s agriculture and food manufacturing sector:

  • was Australia’s largest dairy producer, supplying two-thirds (64%) of the nation’s milk products
  • produced 352,000 tonnes of beef from 1.3 million cattle and calves
  • led the country in sheep meat production, with 314,000 tonnes from 12.8 million sheep and lambs (46% of the national total)
  • harvested 8.8 million tonnes of grains, predominantly wheat, barley and canola
  • employed 153,840 people across the state.

Helping farmers grow

Various strategies have begun through Integrated Water Management that will save Victoria billions of litres of water in this space. They will modernise irrigation systems and improve their efficiency by:

  • removing redundant channels
  • minimising water losses from leakage and evaporation by repairing or replacing open channels
  • upgrading the accuracy of metered outlets that deliver water to farms.
  • utilising fit for purpose alternative water sources (such as recycled water) for agricultural usage
  • constructing Domestic and Stock pipelines for water security and drought resilience.

Farmers and businesses can also hold water shares. These are an ongoing entitlement to use water that's available within a water system. There are rules and regulations about the use of water depending on where it is held. The intention of water shares is to provide secure and sustainable use of Victoria’s water resources within its limits.

This strategy is closely interconnected with Sustainable Diversion Limits (SDLs). These are part of the Murray-Darling Basin Plan, which have been in effect since July 2019. Much like water shares, SDLs are intended to manage water resources and protect sustainability. This ensures the use of water is within limits and remains available for the environment. Water shares are managed through the Victorian Water Register.

Case study

The Goulburn-Murray Irrigation District has two key irrigation projects. They are the Water Efficiency Program and the Connections Project. Between them, these projects are generating 449 gigalitres of annual water savings. They also improve the standards of irrigation services for thousands of customers.

As shown in this video, the Connections Project involved installing almost 10,000 meters, treating 310km and decommissioning another 1,725km of channels. This resulted in 7,709 farms gaining a modernised irrigation delivery system.

Watch the video

Connections Project Reflections - Film 1 (4 min 28 sec)

Meet the expert

Kishin Thadani works in the Rural Water Projects team at Department of Energy, Environment and Climate Action (DEECA). Here he discusses agriculture and irrigation, his role in bringing water to communities across Victoria, and how he moved up from his first job in the department mail room.

Source: DEECA

Photo essay

Further resources

Below you can find a variety of resources to further research and understand agriculture and irrigation in Victoria.

Page last updated: 11/08/25