There were roadblocks to overcome in the form of both the global economic downturn and an Australian dollar soaring above parity, along with seasonal concerns such as the January floods.

Victorian agriculture minister Peter Walsh said a new DPI report found Victorian food and fibre exports jumped $1.3 billion to reach $8.07 billion in 2010-11.

“This demonstrates the high quality and high demand for Victorian food, wine and fibre, and is a fantastic result for our farming communities,” Mr Walsh said.

“But what is most pleasing is that our exports have increased during a difficult economic time, when the Australian dollar reached parity with the US dollar.

He said better rainfall tallies, along with emerging dairy exports to India were key factors to the growth.

The VFF acknowledged the positive results, but warned Federal Government policy could potentially halt the growth.

VFF president Andrew Broad said Victoria had a number of key advantages in terms of food exports, such as health and safety and freight into Asia, however he said he was concerned at the direction agricultural policy was taking at a Federal level.

“While things are looking positive, I am concerned about the impacts the Murray Darling Basin Plan and the carbon tax will have on the sector.

“If the Federal Government purchases water out of Victoria it will hurt farms and the communities and industries that rely on them.”

Dairy is a large part of the reason Victoria sits at the top of the pile in terms of agricultural exports, with 88pc of the value of Australia’s dairy exports originated from the Garden State.

Overall, Victoria makes up 28pc of total Australian agricultural exports by value.

The return of water to cropping regions was clearly evident, with the value of grain exports lifting sharply year on year from $442 million to $1.13 billion.