Tasmania

• Home
• Tasmania at a Glance
• Economics
• Infrastructure
• Resource Industry
  • Forestry
  • Mining
  • Agriculture
    • Opportunities
    • Demand and supply
      • Cattle
      • Fruit and nuts
      • Other crops
      • Sheep
      • Vegetables
    • Governance and Regulation
    • Major Projects
• Planning and Development
• Tourism
• Business
• Companies
• IRIS Maps
• Governance
• Site Map

• Other Links
• BizTas
• Find Government Employee
• Service Tasmania Online

Dairy

Dairy farming occurs throughout Tasmania but the three main regions are the north-west, central north and north-east of the State, including King Island. Because of the way in which climate and soils in Tasmania can vary over relatively short distances, these three regions can be split into a number of sub-regions or areas.

In 2007/08, the Tasmanian dairy industry produced 662 million litres of milk from approximately 460 dairy farms. The average herd size is over 300 cows. Despite recent challenging seasonal conditions milk production continues to grow. Production is based on grass and clover pastures. This pasture-based system enables Tasmanian farmers to produce premium quality milk. The Tasmanian dairy industry consists mainly of dairy cows, however some goats and sheep are milked, mostly for an expanding cheese-making industry.

The dairy industry is of major significance to both the agricultural and manufacturing sectors of the State, as well as being an immportant export industry. Over 90% of the milk produced is manufactured into dairy products (cheexsem milk and whey powders and chocolate products) and the balance supplies the local fresh milk market.

Dairying is important to the social and economic structure of Tasmania's rural communities. Over the last decade, dairy production in Tasmania has increased by nearly 80 per cent.

In 2007/08 a 48 per cent increase in the average farm-gate price for milk resulted in a tripling in average farm cash income for Australian dairy farms, despite large increases in many costs of production and further declines in milk production per form.

For Tasmania, average milk production per form is estimated to have risen in 2007-08. Higher milk production, coupled with higher milk prices, is estimated to have resulted in total farm cash receipts increasing markedly in 2007-08. Farm cash income for dairy farms in Tasmania is estimated to have averaged around $157,000 per farm in 2007/08, compared with $64,900 in 2006-07.

Tasmania is world competitive in milk production and dairy outputs are rapidly increasing. A diverse range of products including confectionary, cheeses, milk and butter are exported.

The main milk processing facilities in the State are located at Wynyard, Burnie and Devonport.

The major dairy processors are:

Fonterra Milk Australia Ltd
Lactos Pty Ltd
Cadbury plc
King Island Dairy
Betta Milk Co-operative Society
National Foods Tasmania
Classic Foods .

The outlook for the Tasmanian dairy industry is positive. Milk production has grown steadily over recent years and the State has the resources of suitable land, water for irrigation and farmers keen to expand production. There is a strong demand for dairy farms, particularly in the Circular Head region, by overseas investors and New Zealand dairy farmers. Production on these farms is likely to rise as a result of on-farm improvements by new owners.

Dairy research, development and extension activities are deliv ered through the Dairy Research Group of the Tasmanian Institute of Agricultural Research (TIAR). 

Further information is available from the Department of Primary Industries and Water.

Beef 

According to the Australian Bureau of Statistics, farm cash incomes for Australian beef industry farms fell in 2006-07 as cattle turn-off was reduced and many farms began to slowly rebuild herds. Similarly, Tasmanian beef industry farms recorded a much lower farm cash income in 2006-07. Cattle turn-off increased in 2007-08, with dry seasonal conditions persisting throughout 2007-08.

Average farm cash income for Tasmanian beef farms is estimated to have increased from approximately $14,600 per farm in 2006-07 to around $24,000 in 2007-08.

Further information is available from the Department of Primary Industries and Water.