The Australian dairy sector’s big opportunity

Published 6 November 15

The Australian dairy industry has a profitable market opportunity to meet increasing demand for dairy products in Asian markets, according to a report published by Australia and New Zealand Banking Group. The report outlines that Australia is in a race with other key dairy exporting nations to supply markets such as Indonesia and Vietnam, both of which are expected to see annual growth in dairy imports of more than 3% over the next 10 years.

To take advantage of this opportunity will require Australian milk production to increase to 15bn litres, a 60% increase compared to the 2014/15 season. Other key strengths of the Australian dairy sector are: the country’s proximity to Asian markets and an ability to supply fresh milk year-round. However, the industry needs to address some issues such as fragmentation in the dairy supply chain, milk supply constraints, an aging farmer population and a reluctance to invest capital.