Dairy productivity: A glass half-full outlook

New analysis shows national dairy productivity has remained largely flat since 2010–11, with a slight annual decline. However, this masks significant variation across regions and farm types.

Larger, more innovative farms continue to make gains, while others face challenges from rising input costs, climate variability and milk price fluctuations. The result is a multi-speed industry with uneven performance across the sector.

Opportunities to boost productivity include greater uptake of on-farm innovation, scaling efficient practices, and improving extension services. Supporting knowledge-sharing between high- and low-performing regions can also help lift national productivity.

While the long-term trend remains positive, targeted investment and collaboration are needed to reinvigorate growth and ensure the industry’s future resilience.