Bulla and Australian Dairy Products Federation on 2023 report

Farmers were concerned about the recent Australia Dairy in Focus 2023 report, after it showed the national dairy industry had fallen from fourth to fifth place on the international dairy exporters list.

The report also showed an increase in dairy imports.

Bulla Dairy Foods chief executive Allan Hood said the report reinforced the challenges of the domestic dairy industry.

"We have a declining milk pool, coupled with high farm-gate prices which is making many manufactures uncompetitive in a global market," he said.

He said Bulla was a well-established domestic business and looked to innovate and create new products, amid increasing dairy imports.

"Decline is mainly being driven by the relative un-competitiveness of some Australian dairy products on the international market," he said.

"Australian dairy is more expensive therefore meaning there is increased margin pressure to keep shelf prices competitive in international markets."

Mr Hood said the industry needed to be able to compete with international competitors.

"Whilst it is definitely highly valued, we can't rely just on being 'Australian', as our point of difference," he said.

Meanwhile the Australian Dairy Products Federation executive director Janine Waller said the report findings reflected the dairy processing sector navigating a "tough period", with a 17 per cent rise in imports.

"The sector faces a complex web of challenges," she said.

"While there is potential for long-term growth and sustainability, immediate concerns and regulatory constraints need addressing to secure the dairy industry's future and to keep dairy manufacturing local."

She said she identified record-low milk supply, the cost of raw milk and rising input costs, global market dynamics, and an adverse policy environment as key challenges.

Ms Waller said record-low milk supply caused heightened competition and increased farmgate prices, and eight businesses closed in the year to date.

"A combination of low milk supply, rising input costs, and competitive pressures is reshaping the dairy industry," she said.

"By supporting Australian-made and branded dairy products, consumers are not just choosing quality; they are investing in the future of a dairy industry vital to our nation's economy, food security, and regional development."