History & Background
The History & Background of Dairy Cattle in Australia
The national dairy herd grew gradually with most production concentrated around the major population centres. The industry peaked in numbers in 1970 with 2.8 million head of milk producing cows.
Numbers subsequently declined to a low of 1.6 million in 1989. Since then numbers have increased to around 2 million with a concurrent increase in per head productivity.
All Australian states have dairy production, supplying fresh milk to nearby cities and towns, although Victoria, with its temperate climate, is by far Australia’s largest producing state. In addition, a wide range of high quality manufactured products are produced in most Australian states. These vary from products such as yogurt, to specialised powders and a variety of cheeses.
In contrast to most of the world’s major dairying countries, the Australian industry is based on extensive grazing rather than feedlot type systems.
While per cow production is not as high as in intensive systems, cost per litre is still extremely competitive. As a supplier of dairy cattle for export, these production systems give Australia the advantage of being able to select animals based on their environmental adaptability. These attributes are potentially vital when developing new dairy projects in relatively inhospitable areas and, as a result, international demand for Australian dairy cattle has grown. The use of feedlots to produce dairy products in Australia remains unusual, although the supplementation of pasture with grain and other feeds has become an accepted management practice.
Victoria accounts for about 65% of Australia’s total dairy production, and also dominates the production and export of manufactured dairy products. New South Wales is the second largest producer at around 12% while the other states all have smaller dairy sectors.
Today approximately 50% of Australia’s milk production is exported in manufactured form. More than half of that is to Asia, in particular Japan and South East Asia. A significant portion also goes to the Middle East.
While Australian dairy exports have increased significantly over the past two decades, restricted access to many international markets has limited potential growth of the industry.
