The South Australian Dairy Story

The South Australian dairy industry is long established.

The industry in the state comprises a number of regions with different production characteristics. 

This document focuses on the investment opportunities that exist in areas of the state’s dairy production sector which demonstrate potential for long-term sustainable growth.

A professional approach

The South Australian industry is serious about its growth potential and the opportunities that exist for new and existing investors in milk production to share in that future growth. 

In 2001 the state industry - in partnership with the state Government - drew up a 10-year state industry development plan.  That plan focused on opportunities for the production regions in the state to offer a platform for expanded industry development through the dairy foods chain.  The plan also recognised the value of the industry to the state, in terms of income multipliers and employment.

Key elements of that development plan dealt with a number of practical strategies that would allow the industry to capitalize on the competitive attributes of its production sector.  Such advantages include:

• Demonstrated productivity of the SA industry and case studies of conversion and expansion
• Natural conditions that sustain longer milk production seasons
• Resources (land, water, feed) available to support growth in low-cost milk production
• Synergies with the Western Victorian milk pool to offer advantages to manufacturers 

Strategies have been identified to achieve a long-term growth plan for the state’s industry around 4 core themes - sustainable resource base; viable and sustainable production sector; SA as an attractive investment destination; and diversity of a product-market mix.

A productive history

In 2002, the South Australian industry represented 7% of the national output of milk of the Australian dairy industry. 

Whilst small in comparison to the neighbouring Victorian dairy industry, the opportunity offered by the South Australian industry lies in its future growth potential in the regions as outlined in the next section of this document.

The state’s industry has a long history of high productivity and quality, which are significant platforms for the capability required for future growth, and the attractiveness of its product to major Australian dairy processors and manufacturers.

SA’s milk has a record of high component values in terms of butterfat and protein - crucial to economical manufacture and processing into dairy products. 

The state’s producers also lead the industry in terms of milk quality, which adds to its value in terms of product shelf-life and versatility to a processor.