As a dairy farmer and President of Australian Dairy Farmers (ADF), I know our industry is under significant pressure on many fronts.
Australian milk production has tumbled from about 11.3 billion litres in 2001–02 to just 8.3 billion in 2023–24. That’s a 26 per cent decline.
Over that time, the number of operating dairy farms has decreased from around 13,800 to just 4500 – a 67% decrease.
This dramatic reduction reflects mounting pressures on the industry – including water shortages, rising input costs, regulatory burdens, and volatile milk prices.
We need investment to stop this decline and support our dairy farmers and the rural communities that depend on us.
ADF recently released five investment priorities to help our industry, and while each priority is important, water security is the most urgent for so many right now. Without reliable water, none of our other efforts can succeed.
Across South Australia and Victoria, dairy farmers are enduring a crippling water crisis. Parts of South Australia face unprecedented drought conditions – the worst in living memory​.
Previously green areas now suffer empty dams and scorched paddocks, with major reservoirs down to about 38% capacity.
This drought has already wiped billions from the South Australian economy and is ravaging parts of Victoria, particularly in the South West.
While farmers are making do – purchasing feed and taking other measures – support is crucial to sustain this vital sector.
A lifeline for farmers
In response, ADF has released its election priority ask, championing a $200 million Dairy Industry Water Offset Program – a three-year initiative to secure water specifically for dairy farms​.
This program would fund practical measures to help farms adapt to drought and competing water demands.
It focuses on using recycled water and aquifer recharge to diversify water supply, ensuring water from buybacks is returned to dairy farmers, building better infrastructure to reduce losses, and supporting adoption of more efficient technology.
By boosting efficiency and tapping new water sources, we can maintain milk production without praying for rain.
This is effectively an insurance policy for our industry’s future – strengthening drought resilience and supporting the rural communities around them.
Act before it’s too late
Despite recent State Government assistance, current policies are not keeping pace with the crisis on our farms.
Drought relief has been slow and modest – and farm aid claims have taken weeks to process. We must cut through this red tape. When a farm has only a few weeks of water left, support needs to arrive in days, not months.
If we fail to act, we risk Australia’s food security and the social fabric of rural towns.
Every dairy farm lost means less local milk on our tables and fewer jobs in country communities.
Our leaders must recognise these stakes – now is the time to commit to real support.
I’m not here to point fingers – we need action and investment, not just words. With strategic support, our industry can remain resilient and continue to bolster Australia’s food security​.
Less water means less milk
Change is also needed in the Murray-Darling Basin, where water policies may be well-intentioned, but are leaving dairy farmers in the lurch.
More water buybacks are looming, promising to further shrink the pool of water from which dairy farmers can produce milk.
We can’t keep removing water from production without offsetting the loss.
Programs like ADF’s proposed Water Offset initiative fill that gap by giving farmers the tools to cope with less water.
Our message to government is clear – secure our water, and we secure our future.
By acting decisively now through funding the Dairy Industry Water Offset Program and cutting needless obstacles we can keep the milk flowing for generations to come.
This means Australian dairy on family tables, farms passed to the next generation, and vibrant rural communities.
It’s time to step up – our nation’s food future depends on it.
By Ben Bennett, President, Australian Dairy Farmers
Column originally published in ACM Agri publications.