Dairy Statistics over the Past 90 years

Over the past 90 years in South Australia, the dairy industry has shifted from a large number of small farms to fewer, larger ones, with overall farm numbers declining dramatically while milk production has fluctuated, peaking in the late 1960s and rising again to over 600 million litres by 2017-18, and increasing cow productivity has become a key factor in output. Key trends include a move to the South-East region, increasing specialization in high-value products like specialty cheeses, and a shift away from butter and cheese production toward fresh milk and other dairy products. 

Production and farm numbers

• Farm numbers: The number of dairy farms has decreased significantly, from over a thousand in the late 1970s to 241 in 2017-18.
• Herd size: Average herd size has increased, from around 70 cows before World War II to over 290 cows in more recent years.
• Herd numbers: The total number of cows in the state has decreased, from 120,000 at the turn of the century to 70,000 by 2018.
• Milk production: Production peaked at 483 million litres in 1969-70, then declined before rising again to over 600 million litres by 2017-18. In 2019-20, production was 492.9 million litres from 69,377 cows. 

Product and industry trends

• Butter production: Butter production has declined dramatically since the 1940s.
• Cheese production: Cheese production increased from approximately 10,000 tonnes in the 1940s to 27,000 tonnes in 1987-88.
• Specialty products: There is a growing trend toward high-value products like specialty cheeses and organic milk.
• Industry shift: Economic forces and urban expansion have led to the dairy industry relocating from the Adelaide Plains and Fleurieu Peninsula to the South East. 

Productivity and technology

• Yield per cow: Despite a smaller overall herd, a major driver of recent milk production increases has been the significant rise in milk yield per cow. In 1985, the average yield was 3,656 litres/cow, while in 2019-2020, it was 7,105 litres/cow. 

South Australia's dairy industry has undergone significant changes over the past 90 years, with a major decline in farm numbers and cow numbers, but a substantial increase in milk production per cow, resulting in relatively stable or increased overall milk production in recent decades. 

Key Trends and Statistics

• Farm Numbers: The number of dairy farms has dramatically decreased. There were over 3,000 licensed dairy farmers in 1976/77, which fell to 988 farms by 1988/89, and further to around 206 farms in 2019-2020.
• Cow Numbers: Dairy cow numbers in SA peaked in the early 1950s. Numbers dropped from 138,000 in 1976 to around 64,000 cows in 2023-24.
• Milk Yield per Cow: The most significant trend is the increase in efficiency.
  • In 1985, the average yield was 3,656 litres/cow.
  • By 1987/88, SA had the highest average milk production in Australia at an estimated 3,793 litres/cow.
  • In 2019-2020, the yield reached 7,105 litres/cow.
  • In 2023-24, the yield was the highest in the country at around 7,484 litres/cow.
• Total Milk Production: Despite fewer cows and farms, total production has remained robust due to higher yields.
  • Production peaked at 483 million litres in 1969-70, then declined to 356 million litres in 1988-89.
  • Milk production almost doubled from 1980 levels to over 600 million litres around 2008, before settling to more recent figures.
  • In 2023-24, SA produced 479 million litres of milk.
• Product Focus: The industry has shifted focus over the decades, moving from butter production (which declined dramatically after the 1940s) to cheese manufacturing and high-value niche products. Approximately 40% of milk is used for fresh drinking milk and 45% for cheese manufacture.
• Deregulation: The Australian dairy industry was de-regulated in July 2000, linking milk prices more closely to international market prices.
• Regional Shifts: Dairying has shifted geographically within SA, moving from the Adelaide Plains and Fleurieu Peninsula to the South East region, which is now the primary production area. 

For the most recent and detailed statistics, reports are available from Dairy Australia and the South Australian Department of Primary Industries and Regions (PIRSA).