Work has begun on a $37.7 million package of road upgrades aimed at improving freight efficiency and road safety across Victoria’s largest dairy production region in the state’s southwest.
The Dairy Supply Chain Road Upgrades, jointly funded by the Albanese and Allan Labor governments, will deliver improvements across six kilometres of roads along Cobden-Stonyford Road at Bullaharre and the Princes Highway West at Pirron Yallock.
The upgrades include improved road surfaces, new safety barriers, and enhanced signage and line markings, supporting more efficient and reliable transport routes for dairy products moving to domestic and international markets.
Federal Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King says the road network plays a major role in supporting national milk supply.
“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,” King says.
“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.”
Works to upgrade two sections of Cobden-Stonyford Road totalling three kilometres began in late November between Evans Road, Cobden and Shenfields Lane, Bullaharre. Planning is also underway for the upgrade of about three kilometres of Princes Highway West at Pirron Yallock.
Victorian Minister for Roads and Road Safety Melissa Horne says the upgrades will support producers and improve reliability.
“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,” Horne says.
Federal Minister for Agriculture, Fisheries and Forestry Julie Collins says supply chain resilience is key for regional industry.
“A safe and secure supply chain helps connect Victoria’s dairy farms to markets helping support local jobs and regional economies,” Collins says.
The Victorian Transport Association (VTA) welcomed the announcement, with CEO Peter Anderson saying investment in freight corridors delivers tangible benefits.
“Infrastructure investment is one of the most powerful tools we have for lifting productivity, improving safety and reducing emissions across the freight industry,” Anderson says.
“For operators, better-designed and better-maintained roads directly translate into lower operating costs, fewer delays, and safer journeys.”




