Tasmanian Dairy Industry

  • Tasmanian dairy performance is strong and is the most rapidly growing and profitable dairy region in Australia.
  • Production is growing at 3% to 4% year on year.
  • Considerable factory investment has occurred, providing major support for new dairy investment.
  • There is significant excess processing capacity within the state to accommodate long term growth in supply.
  • Tasmania has many environmental advantages, including:
  1. an abundance of natural water;
  2. significant investment in irrigation schemes;
  3. an absence of major animal diseases; and
  4. an ideal climate for pasture based dairy production.
  • In addition to new farm development coming online, water is becoming more available, enhancing pasture growth for both dairy and grazing properties. This buoyancy has encouraged operational growth and land expansion.
  • There is an increasing global demand for dairy products.
  • Production costs are kept low through pasture-based farming.
  • Land prices are highly competitive – values in Tasmania are lower than many other Australian states and dairying areas in New Zealand.
  • This provides an opportunity to capitalise on climate change driving Australian milk production to cooler, wetter parts of the country.
  • Current forecasts for a climate-changed world point to a long term and profitable future for the Tasmanian dairy industry.
  • The Tasmanian dairy industry boasts first world infrastructure and a well-organised, cohesive dairy industry sector with clear, demonstrated capability that includes multinational, national and Tasmanian dairy manufacturing companies operating both large and small processors.


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