New data shows how farm numbers have contracted in the world’s top dairy countries

Has Australia lost more dairy farms than other countries over the past four decades? New research shines a light on worrying trends.

Australia had more than 20,000 dairy farms in 1980. But four decades is a long time in agriculture. Picture: Zoe Phillips

Australia is not alone when it comes to a generational drop in dairy farm numbers — although our slump is more significant than other comparable nations.

Data collated by Red Sky Agri has highlighted how farm numbers have shifted in eight dairy nations during the past four decades.

The number of Australian dairy farms has shrunk by more than 75 per cent since 1980 — from 21,994 in the year when Moscow hosted the Olympic Games — to the current figure of 5055 nationally.

Across the Tasman, the decline has been nowhere near as stark.

New Zealand had 16,123 dairy farms in 1980 and last year boasted 11,179 — a 30 per cent contraction over four decades.

Red Sky Agri managing director David Beca has collated the figures to give the Australian dairy sector a better snapshot of how our nation has performed relative to other milk markets.

“If we look at it internationally, both the four decade and 20-year trend, it can be said that (countries) with more profitable farming operations are resulting in less loss of farm numbers,” Mr Beca said.

“New Zealand has one of the most profitable dairy industries and has seen the smallest decline in dairy farm numbers over 40 years. So profit plays a part but it’s not absolute.

“But it’s not always the case. South Africa has had the greatest loss, and it’s arguably the most profitable, but with South Africa, there have been other issues — the figures come off a smaller base and there’s wider political change there.”

How the world’s top 8 dairy nations compare on farm numbers. Source: Red Sky Agri

Like Australia, the American dairy industry has seen a drastic cut in the number of dairy farms in the past four decades.

Back in 1980, the United States had more than 190,000 dairy farms. Last year, that figure had been whittled down to 32,478 — a cut of more than 85 per cent in a generation.

“Actually, there’s not a conclusive trend to say Australia’s losing more dairy farms than others. The Americans have had a similar loss in farms since 1980 but the Americans have a growing and successful industry in other ways such as production and profitability.”