Dairy processors slash emissions as industry invests in cleaner production

As industries across the nation wrestle with emissions reduction, Australian dairy processors have quietly set the pace, cutting absolute greenhouse gas emissions by more than 40 per cent since 2011.

To showcase this progress, Australian Dairy Products Federation (ADPF) has released its second industry publication, Stories of Sustainable Progress, featuring case studies and data from processors across the country.

The publication highlights sharp emissions reductions over the past decade, alongside gains in waste reduction, packaging redesign and resource efficiency.

ADPF Chief Executive Officer Janine Waller said the publication demonstrates real, measurable progress delivered on factory floors across regional Australia.

“Dairy processors are cutting emissions while protecting jobs and continuing to deliver nutritious dairy foods to Aussie families,” Ms Waller said.

The latest data – collected by Dairy Australia on behalf of the Dairy Manufacturers Sustainability Council and Australian Dairy Sustainability Framework – shows processors have achieved:

• a 40.5 per cent reduction in absolute emissions since 2010/11
• a 34.5 per cent reduction in emissions intensity since 2010/11 and 16.7 per cent since 2015/16
• 85 per cent of waste diverted from landfill

Across Australia’s dairy regions, processors are installing biogas plants, upgrading water treatment infrastructure, improving logistics and redesigning packaging to reduce environmental impact and future-proof facilities.

“These investments are strengthening Australia’s food manufacturing capability and are critical for the long-term resilience of regional dairy communities,” Ms Waller said.

From biogas projects at Saputo Dairy Australia and Australian Consolidated Milk, to solar installations at Noumi, That’s Amore Cheese and ProviCo, processors are cutting emissions through targeted energy investments.

Efficiency upgrades, including condensers and transport improvements at Lactalis Australia and boiler upgrades at Fonterra Australia, are delivering further reductions.

Waste reduction is also accelerating, with Bega Group and Bulla Dairy Foods achieving waste diversion rates of about 90 per cent, while Brownes Dairy has invested in new de-packaging technology to recover more materials from waste streams.

Packaging innovation is delivering tangible gains, with the a2 Milk Company introducing 2L and 3L bottles at its Smeaton Grange site made with 20 per cent recycled HDPE.

The Yoghurt Shop is transitioning to fully recyclable packaging wherever possible, Ballantyne is investing in compostable and reusable formats, and Burra Foods is upgrading equipment and production systems to lift efficiency.

Ms Waller said targeted, practical co-investment between industry and government had helped dairy processors de-risk major infrastructure upgrades that individual businesses could not always tackle alone.

Goulburn Valley Creamery’s $50 million investment, which attracted Victorian Government support, in onsite water treatment infrastructure has doubled annual milk throughput to 100 million litres and created 17 new jobs.

“We are also upgrading our wastewater system, which will treat an average of 430 kilolitres each day. Once treated, the water will be stored and recycled for irrigation on local farmland, improving self-sufficiency and environmental outcomes,” Chief Executive Officer Mancel Hickey said.

Ms Waller said the industry remained committed to transparency about where further work was needed.

“The bar is rising – from climate targets to customer and consumer expectations. While the job is not finished, the direction is clear and the momentum is real,” she said.

“Australians can have confidence that locally produced dairy is being made by an industry investing in its environmental, economic and social future, while continuing to deliver the foods people rely on every day.”

The Australian Dairy Sustainability Framework is an industry-wide initiative in which farmers and processors are working towards their sustainability goals, alongside processors own business commitments.

Read ADPF’s industry publication, Stories of Sustainable Progress.