The dairy industry is a key rural sector in Australia and plays a major role in global dairy trade, ranking fourth worldwide. About one-third of Australia’s milk production is exported as processed products like butter, cheese, and milk powders.

The country’s favourable climate and natural resources support a predominantly pasture-based system, enabling efficient, low-cost, and high-quality milk production.

Most dairy farming is concentrated in coastal regions that rely on natural rainfall for pasture growth.