Cows & farms

Owner-operated farms dominate the Australian dairy industry. Share farming was employed on 16% of farms in 2010/11 as it operates successfully within the family ownership model; while corporate farms make up just 2% of the total.

The number of dairy farms has fallen by two-thirds over the last three decades from 22,000 in 1980 to just below 7,000 in mid-2011. The trend in farm numbers will often follow the trend in farmgate milk prices from season to season, with strong prices either slowing the rate of attrition or even reversing the long-term trend. At times of low milk prices farmers can choose to leave the industry or else cease dairying operations until market conditions improve.

Number of dairy cows (000 head)

	NSW	VIC	QLD*	SA	WA	TAS	AUST
At March 31
1979/80	311	1,047	247	103	71	103	1,880
1989/90	238	968	201	89	64	92	1,654
1999/00	289	1,377	195	105	65	139	2,171
At June 30
2000/01**	268	1,377	186	124	72	148	2,176
2001/02	264	1,363	174	110	75	134	2,123
2002/03	250	1,303	159	117	77	142	2,050
2003/04	248	1,297	171	116	74	133	2,038
2004/05 (e)	245	1,295	150	115	70	135	2,010
New Series***
2005/06	222	1,217	127	104	67	143	1,880
2006/07	210	1,150	121	114	60	140	1,796
2007/08	195	1,055	100	103	54	134	1,641
2008/09	201	1,061	107	106	52	149	1,676
2009/10 (r)	203	1,014	98	92	55	134	1,596

2010/11 (e)

200

1,020

145

1,600

Source: ABS and Dairy Australia

* For 1999 and 2000, QLD state figure includes NT cow numbers
** From 2001, census date is June 30, NT and ACT numbers are included in the national total
*** Change in ABS data collection

Nevertheless, falling farm numbers do reflect a long-term trend observed in agriculture around the world, as reduced price support and changing business practices have encouraged a shift to larger, more efficient operating systems.

Average herd size has increased from 85 cows in 1980 to an estimated 230 currently. There is also a trend emerging to very large farm operations of over 1,000 head of cattle.

Analysis of the 2011 National Dairy Farmer Survey indicated that 11% of dairy farms had herd sizes of more than 500 cows and produced 33% of the total milk produced in Australia. At the other end of the spectrum, 26% of farms had fewer than 150 cows and produced just 8% of the milk.

The dominant breed in Australia is the Friesian Holstein, accounting for some 70% of all dairy cattle. Other important breeds include the Jersey, and Australia's own breed, the Illawarra.

Number of registered dairy farms

	NSW	VIC	QLD	SA	WA	TAS	AUST
1979/80	3,601	11,467	3,052	1,730	622	1,522	21,994
1989/90	2,220	8,840	1,970	969	496	901	15,396
1999/00	1,725	7,806	1,545	667	419	734	12,896
2000/01	1,391	7,559	1,305	587	359	638	11,839
2001/02	1,323	7,079	1,152	538	344	612	11,048
2002/03	1,290	6,801	1,125	516	325	597	10,654
2003/04	1,096	6,242	967	458	305	543	9,611
2004/05	1,063	6,108	885	402	278	507	9,243
2005/06	1,024	5,892	802	383	245	498	8,844

2006/07	924	5,346	734	354	222	475	8,055
2007/08	886	5,422	664	332	186	463	7,953
2008/09	860	5,462	648	320	183	451	7,924
2009/10	820	5,159	621	306	165	440	7,511
2010/11(p)	807	4,588*	595	286	170	437	6,883

Source: State Milk Authorities

* The licensing authority in Victoria conducted a comprehensive review of the operational status of dairy farms during the 2010/11 season at the expiry of their last three-year license period. This revealed a number of farm consolidations, transfers of ownership and cancellations over the three-year period - rather than the latest season as is suggested by the data above.