You might think dairy farmers would be enjoying boom times. The dairy industry has been expanding worldwide in response to increasing demand, mainly in the emerging markets of Asia.

But across many developed countries, the number of dairy farmers has in fact steadily declined, as they face growing challenges.

In Australia, the number of registered dairy farms fell from 6,308 in 2014 to 4,420 in 2022.

Australia’s dairy farmers have had to grapple with increasing and unstable costs, labour shortages, long working hours and climate extremes. They’re also staring down fierce competition from increasingly popular plant-based milks.

Even so, dairy remains Australia’s third-largest rural industry. The sector employs about 33,500 people and generates more than A$6 billion in farm gate value.

As farmers leave the industry, the herd sizes of those who remain increase. So, too, do the financial pressures. The

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