Australia’s Dairy Industry Statistics And FAQs

Australia’s dairy industry plays a large role on a global scale. With butter, cheese, milk, and yoghurt among its main products within the nation and to nations across the world, the total value runs up to $4 billion annually. 

Many of the states have their own dairy producers, from small scale, family-run businesses to conglomerations, it should be noted that Victoria is the largest of them all. At least, this is true in terms of rate of production. 

Over 65% of milk delivered to the doorsteps of home, retailers, and distributors within Australia are from Victoria. 1.1 million in herd count— that’s definitely a number that hasn’t been beaten. At the same time, %75 of the country’s cheese is from the same region as well. 

Setting our sights towards the globe, exports are also on the rise. Markets abroad include China and Japan and are currently the two largest. 

FAQs About Australia’s Dairy Industry 

There are areas marked as “high rainfall zones”, and it is in these regions that dairy farming thrives the most. That said, New South Wales and Victoria fall under “irrigated dairy farming”. And because climate changes greatly affect farming, operations for sustaining production differ, one from the other, too. 

Furthermore, the production system is divided into two: Seasonal Production and Year-Round Production. The first is a common scheme that revolves around the availability of pasture-based on seasons. Cows calve during these periods for increased production. 

In contrast, year-round production is tagged as more stable because calving isn’t fixed only within a certain time of the year but is spread out. In this manner, milk production is unfluctuating every year. Moreover, this is what’s implemented for domestic productions and distribution. 

Challenges 

Wavering Policies 

Australia’s open market economy has its advantages because it gives producers and suppliers that no-holds-bound campaign. It’s free of tariffs, licensing requirements, and other restrictive regulations. 

On the contrary, this itself is what is an issue in the industry. What this implies is that the global market can be competitive, and have competitive members, the latter, usually subsidised. Since this isn’t present in Australia’s sector, it can be very tough to compete. 

If global competitors are able to take prices down because of their rate of production and subsidization, Australia’s dairy industry will have a difficult time adjusting to these fluctuations. Although having said that, there have been amendments on how said industry is being progressed towards being more internationally 

Climate 

Just like the rest of the agricultural and aquaculture fields, the dairy industry is significantly impacted by weather, especially the extreme heat that the country experiences during warm seasons. 

Nevertheless, decades of facing these challenges have led them to planning out how to manage them. Close-to-accurate weather forecasting, feeding strategies that vary per season, and similar adjustments are being made in order to cope with extreme climates. 

Analysis of the future of the dairy industry still shows that climate will continue to be a speed bump in its flourishing. But with technological innovations and methods that are being adapted to these difficulties, plus a growing demand from the global market, exporting could pave the way to an exponential surge in profit.