Ruqayyah Snyder
Dairy is one of Australia's most important rural industries, contributing significantly to the national economy. With a history spanning over 200 years, the Australian dairy industry has evolved from small family farms into a thriving and innovative sector. It is currently the third-largest rural industry in the country, employing tens of thousands of people and generating billions of dollars in revenue.
| Characteristics | Values |
|---|---|
| Dairy Industry's Position in Australia's Economy | Third largest rural industry and a key sector of the agricultural economy |
| Organisations Supporting the Industry | Dairy Australia, Australian Dairy Products Federation, Australian Dairy Industry Council, Australian Bureau of Agricultural and Resource Economics and Sciences |
| Milk Production in 2024 | Estimated to increase by 3.3% to 8.75 million metric tons (MMT) |
| Milk Production in 2023 | Forecasted to decline by 2% to 8.4 million metric tons (MMT) |
| Domestic Fluid Milk Consumption in 2024 | Estimated to rise for the first time in six years due to rapid population growth |
| Factory Use Milk Consumption in 2024 | Estimated to increase by 5.6% |
| Factory Use Milk Consumption in 2023 | Forecasted to decline to 5.535 MMT |
| Production and Exports | Cheese, skim milk powder, and whole milk powder production and exports are forecast to decline moderately in 2023 |
| Farm Business Profit in 2017-18 | $88,290 per farm |
| Farm Business Profit in 2018-19 | Negative $21,300 per farm |
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What You'll Learn
The dairy industry is Australia's third-largest rural industry
Dairy is one of Australia's most important rural industries, with a long history dating back over 200 years. The industry has evolved from small family farms into a thriving and innovative sector, now recognised as the nation's third-largest rural industry.
The dairy industry plays a significant role in Australia's economy, contributing approximately $4.4 billion to the gross value of agricultural production in 2018-19. This figure represents around 7% of the total gross value of agricultural production in the country. In 2019-20, the industry generated a farm gate value of $6.1 billion.
The industry directly employs a substantial number of Australians, with estimates ranging from 33,500 to over 46,000 people. There are approximately 5,800 registered dairy farms in Australia, with the majority of milk production occurring in Victoria, New South Wales, and Tasmania. The average size of a dairy herd has increased significantly over the years, from 93 cows in 1985 to 261 cows in 2017, and today there are approximately 1.5 million dairy cows in the country.
Australia exports approximately 30% of its milk production, with exports valued at $3.3 billion in 2022-23. These exports include a range of value-added products such as cheese, butter, ultra-heat-treated milk, and milk powders, which are sent to markets around the world.
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It contributes $3 billion to $6.1 billion to the economy
Dairy is one of Australia's most important rural industries, with a long history dating back over 200 years. It is the third-largest rural industry in the country, generating up to $6.1 billion in farm gate value in 2022-23. The industry's contribution to the economy is significant, estimated to be between $3 billion and $6.1 billion. This value is derived from the production and sale of milk and milk-based products, both domestically and through exports.
The dairy industry in Australia employs tens of thousands of people, with estimates ranging from 33,500 to over 46,000. These individuals work across approximately 5,800 registered dairy farms in the country. The average size of a dairy herd has increased over time, growing from an average of 93 cows per farm in 1985 to 261 cows in 2017. Today, there are approximately 1.5 million dairy cows in Australia, producing around 8.8 to 9 billion litres of milk annually.
The majority of milk production occurs in the south-east states of Victoria, New South Wales, and Tasmania, with the industry as a whole facing varying seasonal conditions and market dynamics across regions. While the industry experienced challenges due to drought conditions in some regions, it has also seen improvements in productivity and efficiency. The financial performance of dairy farms can vary substantially between regions, with factors such as seasonal conditions, markets, and industry structure playing a role.
The dairy industry in Australia is supported by organisations such as Dairy Australia, which plays a crucial role in quantifying the flow of milk across the nation. Dairy Australia also works to support local farmer needs through its Regional Development Programs in various regions, including Gippsland, Subtropical, Western Victoria, New South Wales, and Tasmania. The industry is regulated by the Dairy Code of Conduct, which outlines mandatory requirements for business relationships between farmers and processors.
In conclusion, the Australian dairy industry is a significant contributor to the country's economy, employing a substantial number of people and generating billions of dollars in value. With its long history, vibrant present, and focus on innovation, the industry continues to be an essential part of Australia's agricultural sector.
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Employs 33,500 to 46,000 people
Dairy is one of Australia's most important rural industries, ranking as the third-largest. It contributes significantly to the Australian economy, with a value of around $3 billion to $6.1 billion in 2022-23. This value is expected to increase, with projections showing that the proportion of farms with incomes above $350,000 is likely to grow.
The industry provides employment for a substantial number of Australians, with estimates ranging from 33,500 to 46,000 people. This includes the many dairy farmers across the country, with approximately 5,800 registered dairy farms in Australia. The average size of these farms has increased over time, going from an average of 93 cows per farm in 1985 to 261 cows in 2017. Today, there are approximately 1.5 million dairy cows in Australia, producing around 8.8 to 9 billion litres of milk annually.
The majority of milk production occurs in the southeast region of the country, particularly in Victoria, New South Wales, and Tasmania. These regions often experience varying seasonal conditions, which impact the financial performance of dairy farms. For instance, the Subtropical region, along with New South Wales and Western Australia, reported below-average conditions in 2018-2019 and 2019-2020.
The Australian dairy industry is supported by organisations like Dairy Australia, which is funded by farmer levies and government research and development funds. Dairy Australia works to improve the industry's sustainability and profitability and plays a crucial role in quantifying the flow of milk across the nation. This milk is then processed into a wide range of dairy products, including cheese, butter, yoghurt, and milk powders, which are sold both domestically and internationally.
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5,800 registered dairy farms
Dairy is one of Australia's most important rural industries, contributing significantly to the country's economy. As of the latest data, there are approximately 5,800 registered dairy farms in Australia, a number that has grown from small family farms over 200 years of dairy farming in the country. These farms employ around 42,000 Australians, with some sources placing this figure at over 46,000, and directly contribute to the nation's $3 billion dairy industry.
The average size of a dairy farm herd has increased significantly over the years, from 93 cows in 1985 to 261 cows in 2017. In total, there are approximately 1.5 million dairy cows in Australia, producing about 8.8 billion litres of milk in 2022-23. This milk is then processed into a wide range of dairy products, such as cheese, butter, yoghurt, ice cream, and custard, which are sold domestically and exported worldwide.
The majority of milk production occurs in the southeast region of the country, specifically in Victoria, New South Wales, and Tasmania. The financial performance of dairy farms varies across these regions, with farms in the Subtropical, New South Wales, and Western Australia regions reporting below-average seasonal conditions in 2018-19 and 2019-20. However, the proportion of farms with incomes above $350,000 is projected to have increased from 23% in 2018-19 to 34% in 2019-20, with the majority of these high-income farms located in New South Wales, Western Victoria, and South Australia.
The Australian government supports the dairy industry through various organisations, such as Dairy Australia, which is funded by farmer levies and government research and development funds. Dairy Australia works to improve the industry's sustainability and profitability, increase farm productivity, and develop value-added markets and products. The industry also adheres to the Dairy Code of Conduct, which outlines mandatory requirements for business relationships between farmers and processors.
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1.5 million dairy cows
Dairy is one of Australia's most important rural industries, contributing around $3 billion to the economy and employing about 42,000 people. Dairy farming has been a part of Australia's story for over 200 years, growing from small family farms into a thriving industry.
In 2021, there were approximately 1.5 million dairy cows in Australia, which increased to 1.65 million in 2024 and 2025. This large number of cows presents challenges for housing, feeding, and waste disposal. Most dairy cows are born and raised on specialised dairy farms, where they are milked under controlled and well-organised conditions. They are typically grazed on nearby land, although the amount of land and time spent grazing can vary significantly between farms.
The average size of a dairy herd in Australia has increased over time, growing from 93 cows in 1985 to 261 cows in 2017. The majority of milk production occurs in the southeast region of the country, in Victoria, New South Wales, and Tasmania. Victoria has the largest dairy herd, with 1.2 million head of cattle in 2023.
Holstein cows make up the majority of dairy cows in Australia, with approximately 1.4 million Holsteins in the country. They are prized for their high milk production, with a single Holstein cow able to produce around 7 gallons of milk per day, or about 2,642 gallons (10,000 litres) per year. This is 15-30% more than most other breeds.
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Frequently asked questions
The dairy industry is Australia's third-largest rural industry, contributing between $3 billion and $6.1 billion to the economy.
The dairy industry employs between 33,500 and 46,000 people in Australia.
Australia produces about 8.8 billion litres of milk annually, although one source estimates production at 9 billion litres.
Most milk production occurs on the southeast seaboard in Victoria, New South Wales, and Tasmania.
