Deputy Prime Minister and Minister for Agriculture and Water Resources, Barnaby Joyce said the project will overhaul outdated water infrastructure in the Macalister Irrigation District in southern Victoria.

The project is said to deliver water savings that will be used to increase supply, security and expand irrigated agriculture, generating a $10.3 million increase in farmgate product each year.

The Australian government is also making $20m available for construction of the South West Loddon Pipeline in Victoria.

Member for Gippsland and Minister for Infrastructure and Transport Darren Chester said this is a real win for producers in Victoria’s largest irrigation district, who are already known for their world-class produce including dairy and horticulture products

“This infrastructure upgrade will see open channels replaced with 39km of pipeline, reducing water losses as a result of evaporation and seepage,” Minister Chester said.

“By minimising water wastage, this project will save 9700 megalitres of water each year, meaning water that would otherwise be lost can be used to increase farm productivity,” he said.

The Macalister Irrigation District is the largest irrigation district in southern Victoria, with an estimated annual economic contribution in excess of $500 million per year.