Dairy Cattle Farming in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC A0160Revenue
$6.3bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
14,277
Businesses
4,258
Wages
$XXX.Xm
Dairy Cattle Farming in Australia industry analysis
Dairy cattle farmers have faced a range of challenges over the past five years. They have contended with volatile weather conditions over much of the period, which have constrained production volumes and led to higher farmgate milk prices. These conditions included drought over the much of the country at the start of the period. Furthermore, southern Australia experienced drier-than-average conditions and north eastern Australia experienced floods, reducing output over the second half of 2021-22. Improved weather conditions helped boost output in 2020-21 but labour shortages due to COVID-19 border restrictions limited growth. Forecast La Nina weather conditions will likely help support improved pasture conditions in the current year, but increase the chance of excessive rainfall, which could negatively affect milk yields in the current year.Domestic farmgate milk prices have risen strongly over the past five years. This trend has increased input costs for downstream manufacturers. However, while world dairy commodity prices have been volatile, they have increased overall, encouraging greater demand from processors. A weak Australian dollar has also boosted the price competitiveness of downstream dairy products in export markets and made imported dairy products less price competitive. Revenue is expected to rise at an average annual rate of 1.6% over the five years through 2023-24, to $6.3 billion. However, a drop in the domestic price of milk, as dairy export commodity prices fall and supply inches up, is expected to result in fall in revenue of 7.6% in 2023-24.Operating conditions are likely to remain volatile for dairy farmers, but milk production is projected to fall overall. Farmgate milk prices are also forecast to fall from the historic high of 2022-23 over the next five years. However, falling output will likely keep prices above 2021-22 levels. Demand from domestic and overseas markets is projected to increase as household incomes recover from the effects of global inflation pressures and COVID-19 lockdowns in China. The falling cost of inputs, like stockfeed and fertiliser, will help support profit margins. Overall, dairy cattle farming revenue is forecast to rise at an average annual rate of 1.2% over the five years through 2028-29, to $6.6 billion.
Trends and Insights
- Volatile weather conditions have seen milk production crash over the past five years. Yet, the consequent rise in farmgate milk prices has seen revenue rise.
- Milk sold to be processed as drinking milk has risen as a share of revenue over the past five years. While per capita consumption is declining in Australia, demand is growing in export markets like China and Malaysia.
- Victoria is the largest dairy farming state in Australia. The temperate climate produces lush pastures ideal for raising dairy cattle.
- Market share concentration is low. However, as the number of dairy farms is declining the average size of dairy farms are getting bigger.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.6 % over the past five years, to reach an estimated $6.3bn in 2023.
Trends and Insights
A new mandatory code conduct has improved conditions for dairy cattle farmers
- Prior to 2000, farmgate milk prices for market (drinking) milk was regulated by state governments.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Milk production is set to continue falling
- Milk production in Australia is projected to decline further. National dairy herd numbers are forecast to continue their long-term decline.
Biggest companies in the Dairy Cattle Farming in Australia
| Company | Market Share (%)
2024 | Revenue ($short_0)
2024 |
|---|
There are no companies that hold a large enough market share in the Dairy Cattle Farming in Australia industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Milk for manufacturing , Drinking milk and Cattle. Milk for manufacturing is the largest segment of the Dairy Cattle Farming in Australia.
Trends and Insights
As the milk supply dries up, the availability of milk for manufacturing is declining
- This segment includes sales of milk for use in non-drinking milk dairy products.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Beef Cattle Farming in Australia
Complementors
- Milk and Cream Processing in Australia
- Ice Cream Manufacturing in Australia
- Butter and Dairy Product Manufacturing in Australia
- Cheese Manufacturing in Australia
- Milk Powder Manufacturing in Australia
International industries
- Dairy Farms in the US
- Dairy Farms in Canada
- Dairy Cattle Farming in New Zealand
- Dairy Cattle Raising in the UK
- Raising of Animals in Ireland
Table of Contents
About this industry
Industry definition
Operators in the Dairy Cattle Farming industry raise and milk dairy cattle. The industry is made up of numerous small dairy farms that produce raw milk. These farms are mostly family owned and operated.
What's included in this industry?
Milk for manufacturingDrinking milkCattleCompanies
Purchase this report to view all major companies in this industry.
Related Terms
FARMGATE MILK PRICEFODDERDAIRY PRODUCTSCASEINDAIRY CO-OPEL NINOMILK TIERIMPUTED WAGEIndustry Code
ANZSIC 0160 - Dairy Cattle Farming in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Volatile weather conditions have seen milk production crash over the past five years. Yet, the consequent rise in farmgate milk prices has seen revenue rise.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Milk sold to be processed as drinking milk has risen as a share of revenue over the past five years. While per capita consumption is declining in Australia, demand is growing...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Victoria is the largest dairy farming state in Australia. The temperate climate produces lush pastures ideal for raising dairy cattle.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Market share concentration is low. However, as the number of dairy farms is declining the average size of dairy farms are getting bigger.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
There are no major players in the Dairy Cattle Farming industry. Most dairy cattle farms are small family-owned business that don’t have the capacity to command large shares ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The new Dairy Industry Code of Conduct came into effect from January 2020. The code bans certain pricing practices and provides more flexibility on contracts, enhancing farme...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have increased over the past five years. Drought weakened performance at the start of the period, but surging farmgate prices and lower feed costs due to highe...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Dairy Cattle Farming industry in Australia in 2024?
The market size of the Dairy Cattle Farming industry in Australia is $6.3bn in 2024.
How many businesses are there in the Dairy Cattle Farming in Australia industry in 2023?
There are 4,258 businesses in the Dairy Cattle Farming industry in Australia, which has declined at a CAGR of 4.0 % between 2018 and 2023.
Has the Dairy Cattle Farming industry in Australia grown or declined over the past 5 years?
The market size of the Dairy Cattle Farming industry in Australia has been growing at a CAGR of 1.6 % between 2018 and 2023.
What is the forecast growth of the Dairy Cattle Farming industry in Australia over the next 5 years?
Over the next five years, the Dairy Cattle Farming industry in Australia is expected to grow.
What does the Dairy Cattle Farming in Australia include?
Milk for manufacturing and Drinking milk are part of the Dairy Cattle Farming industry.
How competitive is the Dairy Cattle Farming industry in Australia?
The level of competition is moderate and increasing in the Dairy Cattle Farming industry in Australia.
