Why are dairy farms struggling in Australia compared to other countries?

Last updated 31/01/2025

Dairying can be a tough business in any part of the world. Dairy farming involves long hours, physically demanding work, a complex production system involving animals, plants and reliance on the weather, and more. These factors are common to any major dairy region, from Europe, to the United States, New Zealand or elsewhere.

Unlike farmers in many dairy-producing countries, Australian dairy farmers operate without direct government assistance in the form of subsidies or trade barriers. That means their exposure to global dairy markets is even greater, and combined with Australia’s sometimes challenging climate, profit can vary from one year to the next. 

That being said, Australia’s dairy farmers are currently entering a third consecutive season of strong milk prices and feed costs are also expected to ease further. Survey data from February 2021 showed 80% of farmers reported making a profit in 2019/20, and 88% expected to make one in 2020/21. Results also revealed Australian dairy farmers are positive about the future of the industry and the future of their business.

Whilst Australian dairy farmers face no shortage of challenges, this data shows that they are adaptable and resilient, and thriving in a competitive global market.