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Dairy capability overview

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Overseas-Dairy

Australia has a cost-efficient and technologically advanced dairy industry, ranking third in the world as a dairy exporter after New Zealand and the European Union (EU). 

Despite a severe drought, Australia’s climate and natural resources are generally favourable to dairy production, thus permitting a predominantly (75 per cent) pasture-based operation. This results in an efficient, high-quality milk production operation which costs well below that of most other major dairy-producing countries around the world.

Other cost-effective technologies used by Australian dairy farmers include soil testing, supplementary feeding, improved animal genetics, artificial insemination and state-of-the-art milking equipment.

Australia’s quality dairy products include milk, milk powder, cheese, cream, yoghurt, fromage frais, dairy desserts, butter, butter oil, casein and whey products.

Exports

Dairy exports were valued at $2.7 billion during 2005-06 and accounted for 12 per cent of all global dairy trade. During that year, Australia exported 201,711 tonnes of cheese, 35,526 tonnes of butter, 37,687 tonnes of butter oil, 217, 087 tonnes of skimmed and butter milk powder, 164,860 tonnes of whole milk powder and 76,181 tonnes of whey products.

Australia also produced 10,092 million litres of milk from 1,985 dairy cows. Around 50 per cent of the total milk produced was exported.

Japan is Australia’s single most important export market, accounting for more than 16 per cent of Australia’s dairy exports by value. Other key export markets include Malaysia, Singapore, the Philippines, the USA, Indonesia, Thailand and Saudi Arabia. (Source: Dairy Australia).

Australia entered into free trade agreements with Singapore in 2003, followed by Thailand and the United States in 2005.

Asian markets have considerable potential for dairy consumption growth as incomes rise and diets become increasingly more ‘westernised.’

Cheese

Australia exports an increasingly wide range of cheeses, which include:

  • Cheddar; including Colby, Cheshire, Gloucester, Leicester, Nimbin.
  • Semi hard; including Mozzarella, Edam, Gouda, Swiss, Emmenthal, Fontina, Havarti, Samsoe, Tilsit, Buetten, Vacherin, Bakers, Casalinga, Goya.
  • Hard grating; including Parmesan, Pecorino, Romano, Fresh Pecorino, Melbourno, Pepato, Parmagiano.
  • Fresh; including cottage, cream cheese, feta, Neufchatel, ricotta, Quark, Stracchino, Mascarpone.
  • Mould ripened; including Blue vein, Brie, Camembert

Production

After beef and wheat, Australia’s dairy industry is the third most important rural industry at the farmgate and in 2005-06 was valued at $3.3 billion.

During the past decade, the underlying trend has continued to fewer farms, larger herds and increasing levels of production.

The 2002-3 drought in Australia had a dramatic impact on the dairy industry, reflected in reduced production and exports. However, despite ongoing drought problems, the industry has made a steady recovery.

The impact of the drought has been partially offset by improvements in pasture management and farming practices, animal genetics, artificial insemination and supplementary feeding.

In 2005-06:

  • The average herd size of cows was 224.
  • The average milk yield per cow remained constant at around 5,000 litres a year, thanks in part to improvements in pasture management practises and supplementary feeding regimes.
  • The average annual milk production per farm was around 1,140,000 litres.

The dominant breed of cow in Australia is the Holstein Friesian, which accounts for approximately 67 per cent of all dairy cattle, followed by the Jersey at around 10 per cent and the Holstein/Jersey cross.

Processing

Dairy manufacturing in Australia includes farmer-owned cooperatives, public, private and multi-national companies. Major dairy co-operatives include Murray Goulburn, Fonterra Co-operative Group and Dairy Farmers, which together represent around 55 per cent of industry turnover. Major multi-national dairy companies include Parmalat and San Miguel.

In 2005-06, Australia produced:

  • Cheese – 372,749 tonnes
  • Skim milk powder and buttermilk powder – 227,500 tonnes
  • Whole milk powder – 158,250 tonnes
  • Butter and anhydrous milk fat (AMF) – 145,750 tonnes
  • Whey and casein – 98,436 tonnes

(Source: Dairy Australia)

General information

Dairy farming is primarily concentrated in the south-east of the country, with Victoria accounting for approximately 65 per cent of milk production.
Domestic consumption of milk has been stable for a number of years, at approximately 98-100 litres per capita.

For more information please visit:

www.dairy.com.au/adic – Australian Dairy Industry Council Inc.
www.adff.com.au – Australian Dairy Farmer’s Federation Limited
www.halalaustralia.com – Australian Halal Food Directory
www.aqis.gov.au – Australian Quarantine and Inspection Service (AQIS)
www.dairyaustralia.com.au – Dairy Australia
www.diaa.asn.au – Dairy Industry Association of Australia
www.daff.gov.au – Department of Agriculture, Fisheries and Forestry
www.dfat.gov.au – Department of Foreign Affairs and Trade


(Last updated: 18 Aug 2007)

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