Build a sustainable & secure supply chain

Australia’s dairy industry is built on a strong foundation of world-class food safety, exemplary quality, and a globally recognised clean and green reputation.

Central to this is a long-standing commitment to sustainability that underpins our market advantage and long-term success.

As global demand for sustainably produced food rises, Australian dairy processors are leading the way - reducing environmental impact while upholding the highest standards of quality and innovation.

Dairy processing is energy-intensive, with gas and electricity forming a major share of operational costs.

Over the past decade, energy price volatility has stripped value from the supply chain, reduced processors’ ability to invest, and placed upward pressure on consumer prices.

Additional barriers to full decarbonisation include:

  • the regional location of dairy farms and many processing sites which often comes with network constraints
  • the daily demand profile which doesn’t match existing renewable energy supply profiles – necessitating energy storage and increasing project expense
  • the dynamic nature of many renewable energy sources (e.g., wind and solar) which reduces the reliability of supply and increases business risk, and
  • access to skilled people and preparedness for climate reporting.
With strategic support, dairy processors can scale their sustainability leadership, unlock cost savings, and ensure the sector is equipped to thrive in a low-emissions economy.

The opportunity is clear: environmental gains, regional growth, and globally competitive food production.

Targeted financial support and enabling policy settings to empower dairy processors on the pathway to net zero.

To deliver this ADPF recommendations:

  • provide grants, low-interest loans, tax incentives and capital allowances for:
    • Emissions reduction and climate reporting capability
      • Renewable energy adoption and electrification (e.g. heat pumps, biogas, biomass)
        • Circular packaging solutions and waste reduction technology
        • support to de-risk new technology adoption and upskill the workforce, and alignment of regulation with government and industry emissions and reporting frameworks.
        • ensure equitable investment in regional energy infrastructure to support renewable energy uptake
        • improve consultation with regional communities, and
        • enable a more competitive trade and construction industry through increased immigration of skilled tradespeople.

Stories of sustainable progress

For Australian dairy processors sustainability is not optional – it’s central to who we are and how we work. Our members are taking proactive steps to reduce our environmental impacts, while delivering nutritious food for a healthier world.

Read ADPF's report