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About DairyingThe dairy industry is one of Australia’s major rural industries. Based on a farmgate value of production of $3.2 billion in 2006/07, it ranks third behind the beef and wheat industries. Australia exports around 50% of its annual milk production, mostly to East Asia. Dairying is a well-established industry across the temperate and some sub-tropical areas of Australia. While the bulk of milk production occurs in Victoria (more than 65% in 2006/07), all states have viable dairy industries that supply fresh milk to nearby cities and towns. The climate and natural resources are generally favourable to dairying and allow the industry to be predominantly pasture-based, with approximately 75% of the cattle feed requirements coming from grazing in a year of ‘normal' seasonal conditions. This results in efficient, low-cost, high-quality milk production. The number of dairy farms has more than halved over the past two and a half decades, from 22,000 in 1980 to just over 8,000 in 2007, while the average herd size has increased from 85 cows to 230. Improvements in herd genetics, pasture management practices and supplementary feeding regimes have seen the average yield per cow increase from 2,850 litres a year to around 5,150 litres in this time. Combining this increase in yield per cow with the increase in average herd size, the average annual milk production per farm has increased from 247,000 litres to 1,190,000 litres over the same period. So the underlying trend is fewer farms, larger herds and increasing levels of production. Farmers have made many changes to their general farm management practices and adopted a range of improved technologies, including soil testing, fodder conservation, supplementary feeding, improved animal genetics, artificial insemination programs, the use of new milking equipment and techniques, and the widespread use of computers to record and monitor herd performance. It is estimated that about 40,000 people are directly employed on dairy farms and in manufacturing plants, related transport and distribution activities, and on research and development projects. For more information: |
