Victoria’s dairy industry

Victoria’s dairy industry

Victoria dominates the dairy industry in Australia, producing 65.6 per cent of Australia’s milk. In 2013–14 Victoria produced 6.12 billion litres of raw milk from a dairy herd of around 1.1million. Victoria has 65 per cent of the total number of dairy cows in Australia, and 67.6 per cent of licensed dairy farms are located in Victoria. Owner-operated farms dominate the dairy industry. However, falling farm numbers and steady or increased productivity reflects a long-term trend to larger operating systems.

Dairy producers in Victoria can sell to either liquid milk or manufactured dairy product processors. Dairy product manufacturers utilise around 92 per cent of Victorian raw milk production, while the liquid milk market consumes only 8 per cent of Victorian production. Cheese is the major product stream, with Victoria producing 75 per cent of Australia’s cheese.  

In 2013–14 Victorian dairy exports were valued at $2.29 billion, accounting for 85% of the value of Australia’s dairy exports. Milk and cream products ($1.3 billion) and cheese and whey products ($723 million), were the most valuable dairy export categories.

The largest markets for Victorian dairy exports in 2013–14 were China valued at $369 million, Japan ($359 million), and Singapore ($220 million).

Further information is available on the Department of Economic Development, Jobs, Transport and Resources and Dairy Australia websites.

Source: Victorian Food and Fibre Export Performance 2013-14