Dairy Industry
According to Dairy Australia, the dairy industry in Australia had a farmgate value of production of $3.4 billion in 2009/10. The industry ranks third behind the beef and wheat in terms of its size and contribution to the Australian economy. Approximately 40,000 people are directly employed on dairy farms and manufacturing plants. Related transport and distribution activities, and research and development projects represent further employment associated with the industry.
In Queensland, according to Subtropical Dairy and the Queensland Dairyfarmers’ Organisation, there are about 175,000 milking cows. There are about 580 operating dairy farms, located throughout southeast Queensland, Darling Downs, Wide Bay, Central Queensland around Monto, Rockhampton, and Eungella, and in Far North Queensland near the Atherton Tableland. Within the northern region there are seven major processing plants and more than 50 minor processing factories. The northern industry employs about 4500 people, incorporating about 2700 on farm and annually it is valued ex-factory at about $1 billion. Depending on seasons and conditions, Queensland milk production is similar to consumption at about 500 million litres, although flooding and cyclones in 2010/2011 caused production to drop below consumption.
Dairy is also one of Australia’s leading rural industries in terms of adding value through downstream processing. Much of this processing occurs close to farming areas, thereby generating economic activity and employment in country regions. ABARE estimates the regional economic multiplier effect to be roughly 2.5 from the dairy industry.