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Department of State Growth



The dairy industry in Tasmania covers the farming of dairy cattle and the production of dairy products. Tasmania’s temperate climate, fertile soils and reliable rainfall support low cost, pasture based milk production and the processing of a range of dairy products for domestic and international markets. Dairy is now Tasmania’s single biggest agricultural industry.

There is significant scope for increased, low cost milk production which could see Tasmania’s milk output more than double to 1.5 billion litres per year. The global demand outlook for dairy product appears positive, and will continue to grow with the expanding middle class in emerging markets such as China, changes in diet, increasing urbanisation and rising global population.

Priorities for the dairy sector include:

  • allocating $740 000 to support the Into Dairy – Sustainable Dairy Development Project (through funding a Project Manager and conversion planning)
  • building and co-funding irrigation schemes in existing (North East and North West) and new (Midlands) dairy regions
  • attracting Federal funding to improve, upgrade or extend infrastructure such as natural gas, powerlines and waste water infrastructure.

Sector summary