Upgrades to Dairy Supply Chain Road in VIC gets underway

Monica Gameng   |   February 12, 2026

The Australian and Victorian Governments are getting on with improving journeys and increasing efficiencies in the movement of freight for the nation’s largest dairy production area, with works now underway on the Dairy Supply Chain Road Upgrades, southwest of Melbourne.

Works will be carried out to a total of six kilometres of roads along Cobden-Stonyford Road, Bullaharre, and Princes Highway West at Pirron Yallock.

The upgrades include:

  • Rehabilitating pavement
  • Installation of new safety barriers
  • Upgrading existing vehicle pull-out bays
  • Installation of new signage and line marking

These improvements will support local agricultural activities while providing more efficient and reliable transport routes for dairy products to both domestic and global markets.

“The Dairy Supply Chain Road network in Victoria’s southwest facilitates the daily transport of 24 per cent of the nation’s milk production, with 392,000 cows producing 2.05 billion litres of milk annually across over 1,000 farms.

“These works will also cater for future growth in passenger vehicle volumes and a predicted 20 per cent growth in freight vehicle volumes over the next 25 years, driven by the tourism, dairy and other commodity sectors in the southwest of Victoria,” Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said.

“These vital upgrades will make travel smoother and more reliable for everyone in southwest Victoria, especially the hardworking dairy producers who help drive our state’s economy.

“By investing in better roads, we’re supporting local jobs and ensuring our world-class dairy products reach markets safely and efficiently,” VIC Minister for Roads and Road Safety Melissa Horne said.

Works commenced in late November last year, upgrading two sections of Cobden-Stonyford Road totalling three kilometres between Evans Road, Cobden and Shenfields Lane, Bullaharre.

Meanwhile, planning is underway for upgrades to about three kilometres of Princes Highway West at Pirron Yallock.

The $37.7 million Dairy Supply Chain Road Upgrades is jointly funded by the Albanese and Allan Labor Governments, each contributing $18.9 million and $18.8 million respectively.

“Victoria’s dairy industry contributes significantly to Australia’s agricultural output, which is why these upgrades matter.

“A safe and secure supply chain helps connect Victoria’s dairy farms to markets helping support local jobs and regional economies,” Federal Minister for Agriculture, Fisheries and Forestry Julie Collins said.

“A strong dairy supply chain is essential to our economy and to the communities that rely on it.

“By investing in the infrastructure that connects farms to processors and markets, we’re helping our dairy industry remain productive, competitive and reliable, from the paddock right through to domestic and international consumers,” VIC Minster for Agriculture Ros Spence said.

Source: Minister for Infrastructure, Transport, Regional Development and Local Government; Premier of Victoria – Media Centre; Transport Victoria; Roads & Infrastructure Australia

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Monica Gameng
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 3,000 posts to date. She truly is an industry expert!
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