Lift productivity, value & competitiveness

Our Strategic Priorities

The Australian dairy processing industry is built on a foundation of excellence, locally and internationally renowned for delivering exceptional nutrition, unmatched safety, strong consumer trust, and leading sustainability credentials.

We generate more than $18.5 billion for the national economy and support more than 70,000 jobs - the majority located in the heart of rural and regional communities. We export more than 30 per cent of the milk produced, valued at $3.6 billion.

Yet despite these strengths, the industry is under pressure.

Declining raw milk supply, double digit increases in electricity, gas, ingredients, insurance and compliance, with limited ability to recoup these costs, are squeezing Australian dairy processors to breaking point.

Twenty processing facilities have publicly announced a closure over the past three years. This represents a loss of regional investment, jobs and resilience in the national food system.

ADPF is calling on policymakers to partner with our industry to strengthen dairy’s contribution to national economic growth and safeguard Australia’s future food needs.

Our focus areas include solutions that will:

  • Grow the Australian milk pool
  • Champion Aussie dairy to stave off competition from overseas, and
  • Lower cost of production
Partner with us to rebuild Australia’s milk supply - profitably, sustainably, and for the long term.

To deliver on this, ADPF calls on government to:

  • Fund and implement a long-term industry growth plan to reinvigorate Australian dairy production and processing capacity.
  • Advance the recommendations of the Dairy Productivity, Competitiveness and Value-Creation Project to drive innovation and investment across the value chain.
  • Support enabling on-farm technologies, including virtual fencing and precision agriculture, to lift productivity and sustainability outcomes.
  • Protect agricultural land for food production and align planning, energy, and environmental policy settings to support sustainable growth in dairy regions.
Partner with ADPF to champion Australian dairy - through stronger Buy Australian campaigns and fairer retail competition.

To achieve this, ADPF recommends Government:

  • Develop programs that incentivise retailers to stock, and consumers to buy, Australian-made dairy.
  • Expand and strengthen Buy Australian campaigns to highlight the quality, safety and sustainability of locally made dairy.
  • Work with industry and retailers to ensure shelf space and marketing support for Australian products in domestic supermarkets.
Deliver cost relief through smart policy reform, targeted investment and regulatory certainty.

To achieve this, ADPF recommends government:

  • Establish a fit-for-purpose Dairy Code that supports efficiency and fairness across the supply chain.
  • Expand access to investment levers including clean-energy transition grants, low-cost finance and decarbonisation incentives.
  • Ensure grid upgrades work for dairy processors improving reliability and lowering energy costs.
  • Implement balanced water recovery policy that sustains dairy production and regional communities.
  • Invest in a national transport network designed for a perishable, high-value food sector.
  • Target dairy-specific innovation funding to lift efficiency, productivity and sustainability across the industry.

Policy priorities for the Australian Government

By addressing the priorities outlined in this document, the Australian Government can help secure a strong, competitive, sustainable dairy industry.

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