10 Sept 2026
In early July news broke that a Queensland dairy farmer's milk supply contract would not be renewed, in what QFF member eastAUSmilk described as the first test of commitment for the Queensland Dairy Plan.
The Queensland Dairy Plan was released in early 2026 and was met with industry optimism, following decades of decline. The plan's stated goal is to see the Queensland industry producing at least 300 million litres of milk by June 2032.
With the farm mentioned above producing approximately 3.3 million litres of milk per year which now appears unable to find a buyer, eastAUSmilk are rightly calling on the Queensland Government, milk processors and fellow industry bodies, to ensure the vision of a strong and growing dairy industry laid out in that plan doesn't falter at the first hurdle.
eastAUSmilk have pointed to the closure of the South Brisbane milk factory and Woolworths’ decision to cancel its Farmers Own contracts as contributing factors to this current situation and warn that as more farmers come off contract in the coming year, the dairy supply situation in Queensland could spiral into a crisis.
While the immediate priority for eastAUSmilk is supporting the impacted farmer to navigate this process, and ideally identifying a new buyer for the milk, they are also starting a broader conversation with consumers, helping them to identify local milk.
Queenslanders want to buy Queensland milk, but less-than-clear labelling requirements have led to a complete lack of transparency, which eastAUSmilk have also called out.
Unfortunately, these changes aren’t just impacting dairy farms. Queensland farmers across all commodities are facing increasing pressure on business margins at the same time as they face growing interest in their land for alternative uses. As a result, farmers are increasingly considering the long-term viability of individual farms and entire growing regions are at risk.
Recent debates on Critical Mineral legislation have highlighted the strategic value of agricultural land not just for our economy and national food security, but for the sustainability of regional communities. And while QFF welcomed the retention of landholder protections contained in the amended legislation, these debates are just one part of a broader conversation regarding land use change in Queensland and the viability of our agricultural industries.
Queensland's agricultural industries, supply chain partners and regional leaders must work together to protect the long-term viability of farming businesses and the communities they support. QFF will continue to stand with our peak body members as they respond to the immediate supply contract challenges outlined above, while also calling on the Queensland Government to work alongside industry to support practical, coordinated solutions.