Ruqayyah Snyder
Dairy farming has been a part of Australia's story for over 200 years, growing from small family farms into a thriving industry. In 2022-23, Australia produced about 8.8 billion litres of milk, with the majority of production occurring in the states of Victoria, New South Wales, and Tasmania. In September 2024, Victoria produced the highest volume of milk, with approximately 535 million litres, followed by New South Wales with about 97 million litres.
| Characteristics | Values |
|---|---|
| State that produces the most milk | Victoria |
| Total milk production in 2022-23 | 8.8 billion litres |
| State with the second-highest milk production | New South Wales |
| Volume of milk produced in Victoria in September 2024 | 535 million litres |
| Volume of milk produced in New South Wales in September 2024 | 97 million litres |
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What You'll Learn
Victoria is the top milk-producing state
Dairy is one of Australia's most important rural industries, with a long history dating back over 200 years. In the 2022-23 financial year, the industry generated $6.1 billion in farm gate value and produced about 8.8 billion litres of milk. The majority of milk production occurs in the southeast of the country, in the states of Victoria, New South Wales, and Tasmania.
Victoria stands out as the top milk-producing state in Australia. In September 2024, Victoria produced approximately 535 million litres of milk, far surpassing the output of other states. This significant contribution to the country's dairy industry underscores the state's prominent role in Australia's agricultural landscape.
The state's success in milk production can be attributed to various factors, including favourable climatic conditions, fertile soils, and a long history of dairy farming. Victoria is known for its lush grasslands and temperate climate, providing ideal conditions for dairy cattle to graze and produce milk.
Over time, Victoria has refined its dairy farming practices, embracing technological advancements and innovations to enhance milk production. The state is home to many dairy farms, ranging from small-scale family-owned operations to large-scale commercial enterprises, all contributing to its position as the leading milk producer in Australia.
The dairy industry in Victoria is a significant contributor to the state's economy, providing employment opportunities and generating substantial revenue. The state's focus on sustainability, animal welfare, and product quality has further solidified its reputation for producing high-quality dairy products, both for domestic consumption and export.
Victoria's leadership in milk production has made it a key player in Australia's dairy industry, influencing policies, research, and development. The state actively participates in industry gatherings, such as the National Dairy Symposium, to share insights and shape the future of dairy farming in the country.
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New South Wales is the second-largest producer
Dairy is a significant rural industry in Australia, employing about 33,500 people directly and generating billions in farm gate value. The majority of milk production occurs in the south-east states of Victoria, New South Wales, and Tasmania.
In September 2024, Victoria produced the most milk in Australia, with a volume of approximately 535 million liters. New South Wales was the second-largest producer, with about 97 million liters of milk produced in the same month. This makes New South Wales a significant contributor to the country's dairy industry, despite Victoria consistently leading in milk production.
The dairy industry in New South Wales is an important economic sector, providing income and employment opportunities for many residents. The state has numerous dairy farms, each contributing to the overall milk production. These farms vary in size and scale, with some being small, family-owned operations, while others are larger, more commercial enterprises.
The climate and geography of New South Wales also lend themselves to dairy farming. The state has a diverse landscape, ranging from coastal areas to inland regions, providing suitable grazing land for dairy cattle. The temperate climate, with mild winters and warm summers, is ideal for dairy cows, allowing for year-round milk production.
While New South Wales boasts a substantial dairy sector, it consistently ranks second to Victoria in milk production. This could be attributed to various factors, including differences in agricultural policies, farm management practices, and the size of the dairy cattle herd in each state. Nonetheless, New South Wales remains a key player in Australia's dairy industry, contributing significantly to the country's overall milk production and exports.
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Tasmania also produces milk
Australia produces about 8.8 billion litres of milk annually, with the majority of production occurring in Victoria, New South Wales, and Tasmania. Tasmania's favourable climate and lush, green pastures provide excellent conditions for dairy farming. Ingleby Farms, a prominent example, produces over 25 million litres of milk annually on its Tasmanian dairy farm, housing 900 cows. The farm combines modern technology with sustainable practices, demonstrating efficient and eco-friendly milk production methods.
Tasmania's dairy industry is recognised for its sustainability and innovation. In 2013, Clovelly Dairy received the Tasmanian Landcare Award for "Innovation in Sustainable Farm Practices". This award underscores the state's commitment to environmental stewardship and the long-term viability of its farming practices.
Tasmania's dairy sector also prioritises animal welfare, as evidenced by Clovelly Dairy's 2021 "Dairy Farm Employer of Choice Award". This award highlights the industry's dedication to creating a positive work environment for its employees, fostering a harmonious relationship between farming practices and nature.
The state's dairy production is supported by organisations like DairyTas, which is part of the broader Dairy Australia network. This organisation works to promote the industry, foster innovation, and ensure sustainability. DairyTas hosts events and provides updates to keep the Tasmanian dairy community informed and connected.
In summary, Tasmania contributes significantly to Australia's dairy industry, with its favourable climate and innovative, sustainable practices. The state's dedication to environmental protection and animal welfare has earned recognition, and organisations like DairyTas further strengthen the industry's presence in Tasmania.
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Australia exports 30% of its milk
Australia exported approximately 30% of its milk production in 2022-23, with exports valued at $3.3 billion. The country's dairy industry is the third-largest rural industry in Australia, generating $6.1 billion in farm gate value in the same period. The industry directly employs approximately 33,500 people.
The majority of milk production occurs in the south-east states of Victoria, New South Wales, and Tasmania. Dairy exports from Australia are regulated by the country's export control legislation, and imports of milk products are restricted. Milk producers in Australia must pay a Dairy Services Levy based on milk production, which funds industry services body Dairy Australia. This levy aims to increase productivity, develop value-added markets and products, and promote the industry.
Australia exports dairy products worldwide, with China, Japan, and Indonesia being the leading destinations in 2024. In that year, exports to China were valued at almost one billion Australian dollars.
In 2024, milk production in Australia was estimated at 8.7 million metric tons, with expectations for 2025 to be higher but for challenging dry conditions in parts of the country's dairy-producing regions. Factory use of milk is expected to rise, with much of it forecast to be used for cheese production. Skin Milk Powder (SMP) and Whole Milk Powder (WMP) production is predicted to remain stable, while butter production is expected to increase slightly.
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Dairy is Australia's third-largest rural industry
Dairy is one of Australia's most important rural industries, generating $6.1 billion in farm gate value in 2022-23. It is Australia's third-largest rural industry, producing about 8.8 billion litres of milk in 2022-23 and directly employing approximately 33,500 people. The industry is regulated by Australia's export control legislation, and imports of milk products are restricted. Commercial imports require an import permit.
The majority of milk production occurs on the southeast seaboard in Victoria, New South Wales, and Tasmania. Australia exports approximately 30% of its milk production, with exports valued at $3.3 billion in 2022-23. These exports are largely in the form of value-added products such as cheese, butter, ultra-heat-treated milk, and milk powders.
The industry is supported by organisations such as Dairy Australia, a national service organisation funded by farmer levies and government research and development funds. Milk producers in Australia pay a Dairy Services Levy based on milk production, which funds industry services and research and development. This levy aims to increase farm productivity and develop value-added markets and products.
The Australian Dairy Farmers (ADF) is the national advocacy body representing dairy farmers across Australia, while the Australian Dairy Products Federation (ADPF) is the peak policy body for commercial/non-farm members of the industry. The industry also has a Dairy Code of Conduct, which includes mandatory requirements for business relationships between farmers and processors.
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Frequently asked questions
Victoria produces the most milk, with approximately 535 million litres in September 2024.
New South Wales is the second-largest producer of milk in Australia, with about 97 million litres produced in September 2024.
Australia produced about 8.8 billion litres of milk in 2022-23.
Most milk production occurs on the southeast seaboard, specifically in Victoria, New South Wales, and Tasmania.
