Industry information

The dairy industry continues to be one  of Australia’s major rural industries. Based on a farmgate value of production of $3.4 billion in 2009/10, it ranks third behind the beef and wheat industries.

It is estimated that approximately 40,000 people are directly employed on dairy farms and manufacturing plants. Related transport and distribution activities, and research and development projects, represent further employment associated with the industry.

Dairy is also one of Australia’s leading rural industries in terms of adding value through further downstream processing. Much of this processing occurs close to farming areas, thereby generating significant economic activity and employment in country regions. ABARE estimates this regional economic multiplier effect to be in the order of 2.5 from the dairy industry.

Dairy farming regions & operations

Dairying is a well-established industry across temperate and some subtropical areas of Australia. While the bulk of milk production occurs in south-east corner of the country—some 80% in the three states of Victoria, South Australia and Tasmania - all states have dairy industries that supply fresh drinking milk to nearby cities and towns. A range of high-quality consumer products, including fresh milks, custards, yogurts and a wide variety of cheese types, are produced in most Australian states. Nevertheless, the manufacturing of longer shelf life products, such as cheese and specialised milk powders, is steadily becoming more concentrated in the south-east region of Australia.

A changing environment

Due to environmental issues and demand for increased productivity and efficiency, farmers have made many changes to their farm management practices, including soil testing, fodder conservation, supplementary feeding, improved animal genetics, artificial insemination programs, the use of new milking technology, and the widespread use of computers to record and monitor herd performance. These changes have created the need for a more highly trained, qualified and skilled dairy farming workforce.

Dairy farming areas by Regional Development Program