Cow and Farms Data

Dairy farms are located in all states of Australia. However, most of Australia's milk production takes place in the south-east corner of the country.

South-east Australia’s climate and natural resources are generally favourable to dairying and allow the industry to be predominantly pasture-based. In an average year, approximately 60%–65% of cattle feed requirements in south-eastern Australia comes from grazing. This results in cost efficient, high-quality milk production.

Most farms are in coastal areas where pasture growth is generally reliant on rainfall. Nevertheless, there are several inland dairying areas reliant on irrigation, most notably in northern Victoria and the New South Wales Riverina.

Farm numbers

Over the past 40 years the number of dairy farms in Australia has fallen by almost 75% to 5,213 in 2018–19. Strong farmgate milk prices tend to either slow the number of farmers leaving the industry, or even reverse the long-term trend.

At times of low farmgate milk prices, farmers choose to leave the industry or else cease dairying operations in favour of other farming activities, such as beef cattle farming. Other factors, such as challenging seasonal conditions also affect exits from the industry. This was evident in 2018–19 following a challenging year on farm.

Nevertheless, falling farm numbers reflect a trend in agriculture around the world. Changing business practices have encouraged a shift to larger, more intensive farming systems with greater economies of scale.

Number of registered dairy farms in Australia

Herd size

While the number of farms across Australia has decreased, the average herd size is growing. In 1985 the average herd size was 93 cows and in 2018–19 it had grown to 276. There is also an emerging trend of large farm operations of more than 1,000 dairy cattle.

Despite the increase in average herd sizes over the longer term, the national herd size has remained stable in recent years. A contributing factor to this situation is the increased volatility in farm cash incomes. This has led many farmers to participate in the export heifer trade, or sell dairy cows for slaughter in an attempt to stabilise farm income.

The national herd decreased in 2018–19 as challenging seasonal conditions resulted in an increase in farm exits and a move to smaller herd sizes on many farms.

The dominant breed in Australia is the Holstein, accounting for about 70% of all dairy cattle. Other important breeds include the Jersey, the Holstein/Jersey cross, Brown Swiss, Ayrshire and local breeds, the Australian Red and the Illawarra.

Number of registered dairy farms in Australia

Supplementary feeding

Supplementary feeding with grain, hay and silage is widespread and has increased significantly over the past decade as farmers adapt to drier conditions. Total mixed ration (TMR) dairying continues to be less common in Australia. Such changes in production systems have introduced an added input cost and additional level of risk in the variability of farm returns.

The 2019 Dairy Australia National Dairy Farmer Survey showed that nearly all dairy farmers engaged in some level of supplementary feeding. In 2018–19, the national average was around 1.6 tonnes of supplementary feed per cow per year, unchanged from the last two years. However, supplementary feeding did increase in Western Australia, up to an average of 2.3 tonnes per cow per year. Feeding moderate to high levels of concentrates remains the most common feed system and the proportion of dairy farmers doing so was steady across Australia.