THE region's dairy farmers have welcomed a funding program from the federal government.
In the latest boost for the industry, producers can now access grant funds up to $20,000 to help pay for new equipment including milk cooling, milk-harvesting and hot water production.
Peel Valley Milk owner Todd Wilson said the government's support was most welcome.
"I'm not totally across it, but from what I am hearing this is a really positive program," Mr Wilson said.
"I haven't really had a proper look at it, but from what I have seen it looks pretty good.
"Anything to help people get going again after the current economic situation and the couple of bad seasons we have had will help dairy farmers."
Mr Wilson said he felt the federal government needed to implement as many measures as possible to help dairy producers weather the economic climate created by the COVID-19 pandemic.
"I think they are trying, but they certainly have to with everything that's going on," he said.
"They have to try and stimulate areas and agriculture is such a big factor for helping to stimulate local economies.
"If they can give farmers a bit of an extra boost and a bit of a hand, they can kill two birds with one stone because that money eventually has a flow-on effect into the local economy."
Dairy Connect chief executive officer Shaughn Morgan said the funding would help farmers improve on-farm efficiency and productivity.
"Dairy farmers are able to receive grants of up to $20,000 to upgrade equipment and reduce energy consumption," Mr Morgan said.
"The grants were made available on Monday this week under the government's energy efficient communities' program."
Federal Agriculture Minister David Littleproud said a healthy dairy industry was crucial to regional economies.
"Supporting the long-term sustainability of our dairy farmers is critical to the sustainability of regional Australia and to Australia's food security," Mr Littleproud said.
"Energy use in milk cooling, milk-harvesting and hot water production is one of the highest overheads in the dairy industry, costing producers as much as $12,800 per 100 cows each year."
The maximum project period for the funding is 18 months and eligible producers must have an ABN, as well as a licence to operate a dairy cow farming business.
To apply, visit business.gov.au.