The state government is putting $20 million towards feed management on Victoria's dairy farms.
Agriculture Minister Gayle Tierney visited Hamilton SmartFarm to announce the funding, part of the the $42.5 million DairyFeedbase program.
She said the program would deliver six transformational projects across soils, forage and animal nutrition over the next five years.
Ms Tierney said the program was helping invest in the industry's future, so it could continue to be a world leader in innovation, research and practical on-farm improvements.
Dairy Australia chair James Mann said it was a leading example of the industry working with government.
"(Feedbase) will improve the performance of soils and pastures in a way that benefits both cows and the environment," Mr Mann said.
"The need to address a changing climate is essential and science has a critically important role. "
From researching soil health and pasture composition changes, to measuring and reducing methane emissions, the six projects aim to increase the profitability and productivity of dairy farms while reducing their impact on the environment.
Ms Tierney said the projects would also link to other national research underway and make the most of Victoria's world-class facilities at the Ellinbank and Hamilton SmartFarms and AgriBio, located at Bundoora.
She said since 2017, the DairyFeedbase program had worked closely with the dairy industry and developed a range of farmer ready products and tools - including satellite and sensor technologies to measure pasture production and quality across their farms.
The program had also made research breakthroughs such as optimising herd nutrition to boost productivity in a way that was resilient to the challenges of increasing temperatures and climate variability.
Together with the sister program, DairyBio, the economic benefits were anticipated to exceed $1 billion by 2030 and demonstrate the programs' potential for enhancing farm profits, milk production and herd health outcomes.
Gardiner Dairy Foundation chair Len Stephens said his organisation was proud to support innovative projects like Feedbase, to ensure a sustainable and profitably future for the industry.
"This successful collaboration has delivered high impact innovations through research, allowing dairy farmers to apply new information for productivity growth and mitigation of climate change risks."
To learn more about the DairyFeedbase program please visit dairyfeedbase.com.au.