NSW Dairy Industry overview
Dairy is one of New South Wales’s largest agricultural sections, with NSW being the second largest dairy producing state in Australia, second to Victoria. The industry is also a major source of employment, particularly across regional areas.
- 990 million litres of milk produced each year
- 6,000 people employed on farms and in processing
- $812 million of milk leaving NSW farms each year
- 460+ dairy farms in NSW
- 300 cows per farm (average)
- 6,677 litres of milk produced per cow each year (average)
NSW has the widest ecological variation between dairy regions of any Australian state, ranging from the subtropical north coast to temperate south coast and irrigated inland regions. Each region requires a different approach to management issues such as feedbase selection, management systems, and available processors.
To reflect this, we often split dairy farms into North NSW and South NSW, with Sydney being the approximate boundary between them. This allows the Dairy Unit to provide specific information and reporting relevant to businesses in those areas.
The outlook for dairy in NSW is good and the industry is well-placed to grow. Dairy is a great source of nutrition and the quality of NSW milk and processed dairy products is second to none – which keeps consumer demand strong and opens up export market opportunities.
- Ian Zandstra, NSW Fresh Milk and Dairy Advocate, 2021
- Industry figures are available in the NSW Dairy Industry Overview (PDF, 9099.93 KB).
- A summary of recent industry figures can be accessed using the NSW Dairy Industry Snapshot (2022-23) (PNG, 666.27 KB).
- Historical industry information is available in this in-depth 2020 NSW Dairy Industry Situation Analysis report (PDF, 5520.59 KB).
On a national level, the dairy industry is Australia’s third largest rural industry and is a key contributor to the overall agricultural economy. A snapshot of Australia’s role in the global dairy industry based on the current year's data is available in the Dairy Industry In Focus Report, produced by Dairy Australia.
NSW Licensed Dairy Farms
This map shows the distribution of registered dairy farms across NSW. It also includes the number of farms and total milk produced per Local Government Area.
Milk Supply Agreements
This section provides a list of milk processors supplied by NSW dairy farmers and links to their Milk Supply Agreements containing their minimum milk price. It also provides information about the Dairy Industry Code of Conduct and considerations for dairy farmers who are evaluating milk supply agreements.
The Dairy Industry Code of Conduct (the Mandatory Code or the Code) is an industry code regulating the conduct of farmers and milk processors in their dealings with one another. The Code came into effect on 1 January 2020 and aims to improve the clarity and transparency of trading arrangements between dairy farmers and processors.
The Code has had implications for Milk Supply Agreements (MSA) since July 1, 2020. By 1 January 2021 all contracts had to be compliant with the Code. The ACCC is responsible for enforcement of the code.
Some sections of the Code do not apply to the farmer or a processor if the processor is a small business entity (annual aggregated turnover of less than $10 million in the previous financial year).
Please visit the ACCC website to see full details of the Code including ‘What the dairy code means for farmers’.
Dairy Australia has developed useful checklists for farmers to help understand the Code and Milk Supply Agreements, including Talking points for contract discussions. They are all available on the Dairy Australia website.
It is a requirement of the Code that Milk Supply Agreements must include:
- a minimum price (the lowest price payable under the agreement) and be published on the processor’s website by 2pm on the 1st June
- a cooling-off period of at least 14 days
- a procedure for handling complaints
- Other important aspects of the Code:
- Retrospective step-downs (where the processor reduces the minimum price with respect to milk already supplied) are prohibited in all circumstances
- Prospective step-downs (where the processor reduces the minimum price for milk yet to be supplied) are permitted only under a narrow range of exceptional and temporary circumstances.
- Exclusive supply agreements are not prohibited by the code. However, processors are required to offer a standard form non-exclusive option when they publish their contracts on 1 June.
- When comparing processor prices, it is important to take the following into consideration:
- Your farm has its own volume supply, supply curve, quality and components which will affect the actual milk price received.
- You must read the Milk Supply Agreement closely to understand other payments such as loyalty and sign on payments that aren’t factored into the milk price announcement.
- You must also familiarise yourself with the processor’s Statement of Circumstances (a statement setting out the circumstances in which the processor would enter into the standard form MSA). If seeking a higher milk price, ensure any benefits are not outweighed by the cost of producing that milk.
- Speak directly with any processor you are considering supplying and obtain an Income Estimate. This is the best way to understand the price that will apply to you. Do your due diligence, it is your business.
- Milk Supply Agreements will have an impact on your business – you should discuss your circumstances and options with your advisor.
- Under the Code, farmers and processors need to keep a written record of milk supply agreement, any variations or terminations of the agreement, as well as other specified records, for at least six years.
The table below lists processors and their relevant websites to assist you in understanding what each processor is offering. In most instances this requires you to read the relevant Milk Supply Agreement.
Milk processors and retailers supplied by NSW dairy farmers and relevant websites
The information sourced for this table has been compiled from publicly accessible websites (as required by the Code). Any omissions are unintentional and can be updated.
Processor | Website link |
|---|---|
Australian Consolidated Milk (ACM) | |
Bega Cheese Group | https://begagroup.com.au/farm-services/milk-supply-agreements/ |
Coles NSW | https://suppliercentral.coles.com.au/s/knowledge-centre/article/Dairy-Farmers |
Dairy Farmers Milk Cooperative | |
Fonterra | |
Kyvalley Dairy Group | |
Lactalis | |
Norco | Norco - Milk Supply Agreements - 1 July 2024 to 30 June 2025 |
Noumi | |
Real Dairy Australia | |
Richmond Dairies | |
Riverina Fresh | |
Saputo | |
Woolworths |
The information sourced for this table has been compiled from publicly accessible websites (as required by the Code). Any omissions are unintentional and can be updated.
More information
For more information please contact Sheena Carter, Development Officer Dairy Farm Business Management:
- Mobile: 0488 277 133
- Email: sheena.carter@dpi.nsw.gov.au