Over the past 10 years milk production in the Tasmanian Dairy Industry has continued to grow. There has been a 19.5% increase in production compared to a national decrease of 15%. Tasmania is the only State of Australia to show growth. This is based around sustainable farm management practices, efficient on farm production systems and a relatively favourable climate for pasture based dairy farming.

The Tasmanian dairy industry produced a record 708 million litres of milk off approximately 460 dairy farms in 2008/09. 2010/11 has been a good production season and after a poor 2009 conditions have returned to growth. Tasmania now produces just under 8% of the nations milk.

The Tasmanian industry has the potential to development further with improvements expected in milk price and in continued access to water for irrigation, land for new dairy development and Fonterra’s capacity to handle increased volumes of milk . There is scope for investment in current dairy farms, for new dairy farm conversions and for additional processing capacity.

National Foods have recently announced plans to invest in their Burnie cheese manufacturing facility which should see an increased demand for milk production.

  Click here for 'Dairy in Tasmania, Regional Profile for Dairy 2011: Situation and Outlook (Dairy Australia)'

The Tasmanian dairy industry is a temperate climate pasture-based industry that supplies milk for a range of high quality manufactured products including fresh milk, cheeses, powders, fat products, yoghurts and other specialty products.