The Australian Dairy Farming Industry
The Australian dairy industry is a major rural industry in Australia. Based on farmgate value of production of $3.3 billion in 2005/2006, it ranks as the third most important rural industry and the fifth most important in agricultural exports valued at $9.5 billion.
While Australia accounts for an estimated 3.1 per cent of world production, it is an important exporter of dairy products. Australia ranks third in terms of world trade with a 12 per cent share of all dairy product exports behind New Zealand and European (Dairy Australia website, accessed 27 July 2007, www.dairyaustralia.com.au). Thus, the dairy industry is extremely important to the Australian economy, particularly in rural and regional areas where most of the processing occurs, in generating significant economic activity and employment opportunities.
The Australian dairy industry is divided into two sectors, dairy farming and dairy processing.
Dairy Farming Regions and Operations
Dairy farming occurs in many areas of Australia. While the bulk of milk production occurs in Victoria (more than 65 per cent in 2005/06 (Dairy Australia website, accessed 27 July 2007, www.dairyaustralia.com.au), all states have productive dairy industries that supply fresh milk to local cities and regional communities.
Owner-operated farms dominate the Australian dairy industry, however farming is becoming more sophisticated with the move to larger, more efficient operating systems. As the scale and complexity of these farming businesses changes it will alter the way in which people are employed, with more opportunities for specialised roles in supervision, leadership and management.
Dairy Breeds and Production
In Australia the dominant breed of dairy cattle is the Holstein Friesian. Other important breeds include the Jersey, the Holstein/Jersey cross and Australia’s very own breed, the Illawarra. Most breeding is by artificial insemination, where Australian farmers have access to some of the best dairy cattle genetic material in the world.
Improvements in herd genetics, pasture management practices and supplementary feeding regimes have seen the average annual yield per cow increase from 2,850 litres to around 5,000 litres over the past two decades. Combining this increase in yield per cow with the increase in average herd size (increased from 85 cows in 1980, to an estimated 224 in 2005/06), the average milk production per farm has increased from 247,000 litres to 1,094,000 litres over the same period (Dairy Australia website, accessed 27 July 2007, www.dairyaustralia.com.au).
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 Australia (2005) Australian Dairy Industry in Focus 2005
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