Dairy Cattle Farming in Australia: Market Size, Businesses & Forecast 2026

The Dairy Cattle Farming industry in Australia comprises the breeding and raising of dairy cattle for raw milk production. According to the Australian Bureau of Statistics (ABS), the sector generated a local value of raw milk production of $5,968.3 million in 2024-25 (ABS Australian Agriculture: Livestock, 2024-25), while Dairy Australia reported a farmgate production value of approximately A$5.966 billion in 2024-25 (Dairy Australia In Focus 2025). Industry direction is characterized by ongoing structural consolidation, with farm numbers declining to roughly 3,772 operating farms in 2024-25 while average herd sizes and milk yields per cow continue to expand.

Industry snapshot

Key public data points

Historical & forecast

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What does the Dairy Cattle Farming in Australia industry cover?

This industry involves operating commercial agricultural enterprises primarily engaged in farming dairy cattle for raw milk generation and breeding dairy stock. It encompasses pasture-grazing and housed dairy cow management, herd replenishment, and the production of fresh unprocessed fluid milk delivered to dairy processing facilities.

• •Primary output is raw whole milk delivered directly to downstream dairy processors.
• •Covers specialized dairy cattle breeding, herd replacement rearing, and culled dairy animal disposals.
• •Classified under code 0160 within the official Australian and New Zealand Standard Industrial Classification (ANZSIC).

Who operates in the industry and how is it structured?

The sector exhibits a fragmented farm production base transitioning toward larger corporate and family-owned farming enterprises. Geographically, Victoria accounts for the vast majority of national production, with significant operations in Tasmania, New South Wales, Queensland, South Australia, and Western Australia.

• •Victoria remains the dominant production hub, housing over 1.3 million dairy cattle in 2024-25 (ABS).
• •The national dairy herd comprised 2.1 million dairy cattle at 30 June 2025 (ABS).
• •Active commercial dairy farm operations decreased to 3,772 farms in the 2024-25 season (Dairy Australia).

What drives demand in the industry?

Demand is driven by domestic retail fresh milk consumption, raw milk inputs required for local manufacturing (cheese, butter, yogurt, and powders), and international trade demand. Export market conditions in key Asian and Middle Eastern economies heavily dictate raw milk processor contracting volumes.

• •National milk production totaled 8,315 million liters in the 2024-25 season (Dairy Australia).
• •Exports accounted for 36% of total Australian milk production volume in 2024-25 (Dairy Australia).
• •Total Australian dairy export value reached A$3.808 billion in 2024-25 across key markets like Greater China, Japan, and Indonesia (Dairy Australia).

Who are the notable companies in the industry?

At the farmgate level, competition occurs among thousands of independent primary producers supply-contracting to major processing multinationals and farmer-owned cooperatives. Major milk processing entities directly dictate local price signals and farmgate milk collection contracts across regions.

• •Fonterra Co-operative Group Limited (major processor contracting directly with Australian farms).
• •Bega Cheese Limited (ASX: BGA, key Australian publicly listed food and dairy processor).
• •Saputo Dairy Australia Pty Ltd (wholly owned subsidiary of Canada-based Saputo Inc.).
• •Lactalis Australia Pty Ltd (part of the French multinational Lactalis Group).

What are the recent trends and outlook?

The sector faces climate volatility, rising feed/input costs, and land competition, prompting adoption of automated milking systems (AMS) and precision farming technologies. Farmgate value projections reflect tight national supply dynamics and recovering global commodity pricing.

• •Average milk yield achieved 6,287 liters per cow in 2024-25 (Dairy Australia).
• •ABARES projects milk production value to lift to $5.8 billion in 2025-26 as farmgate prices rise 8% year-over-year (ABARES 2025).
• •Long-term dairy industry total factor productivity growth averaged 1.1% per year from 1978-79 to 2024-25 (ABARES).

How is the industry regulated?

Dairy farmers must operate within strict animal welfare, biosecurity, environmental management, and fair-trading frameworks established by federal and state government authorities.

• •Governed by the mandatory Competition and Consumer (Industry Codes, Dairy) Regulations 2019 (Dairy Code of Conduct).
• •Regulated by state food authority bodies (e.g., Dairy Safety Victoria, NSW Food Authority) for raw milk hygiene and safety.
• •Subject to national biosecurity and livestock traceability regulations under the National Livestock Identification System (NLIS).

Government, statistical and trade sources used for this Claight analysis.

• Australian Bureau of Statistics (ABS) Australian Agriculture: Livestock 2024-25 ·
• Dairy Australia In Focus 2025 ·
• ABARES Agricultural Productivity Estimates 2024-25 ·
• USDA Foreign Agricultural Service Australia Dairy and Products Annual 2024