The Australian dairy industry is one of the country’s most important food and export industries.

Dairy is one of Australia’s leading rural industries in terms of value-adding through downstream processing. In 2005–06, Australia’s annual dairy production at the farm gate was valued at A$3.3 billion. Ex‑factory sales were valued at almost A$9.5 billion and dairy products generate approximately A$5.1 billion annually in domestic supermarket sales.

It is one of the most competitive and efficient dairy industries in the world. In 2005–06, there were 8,844 dairy farms, producing about 10 billion litres of milk each year from a herd of just under 2 million milking cows. Around 50 per cent of all milk production is exported annually.

The value of dairy product exports for the same period was A$2.7 billion, ranking third in world trade with a 12 per cent share of all dairy product exports.

The dairy industry has more than A$20 billion invested in capital assets and dairy farmer-owned cooperatives process 55 per cent of all milk.

Australia’s competitiveness will continue to be based on its ability to achieve quality delivery along the supply chain and food safety. This is done through advanced technologies, clean green natural resources and industry funding programs.