A new strategic report has shone a light on northern Victoria’s pivotal role in interstate dairy processing.

The Murray-Darling Basin Dairy Industry Strategic Plan draws attention to the volumes of milk trucked into the region for processing, and liquid milk shipped out for consumption in other states.

Drawing on the observations in a 2023 Fresh Agenda report, the strategy points to the way dairy processing is balanced across the Murray-Darling region.

“Increasingly, fresh milk is transferred between dairying regions for processing,” the strategic plan says.

“Currently, surplus milk from Gippsland and western Victoria is transferred to milk factories in northern Victoria for processing.

“It’s also estimated about 250 to 300 million litres of milk have been transferred from the Murray-Darling Basin to meet processing needs in other states, illustrating the interconnectivity of dairy regions.

“The freight industry supporting the Australian dairy industry is estimated at around $890 million annually supporting the movement of raw and processed product at the various stages of the supply chain.”

The strategy was launched by the Murray-Darling Basin Dairy Industry Steering Committee on Friday, August 1, and creates a comprehensive blueprint designed to strengthen the competitiveness, sustainability and prosperity of the dairy sector across the basin and beyond.

Steering committee chair Lindy Nieuwenhuizen said the impact of the volumes of milk produced in the Murray-Darling Basin was underestimated.

“This strategy is a call to action for communities, service providers and governments,” Ms Nieuwenhuizen said.

“Dairy needs its local partners in new and different ways, especially to grow, attract and retain the skilled and professional workforce our future depends on.”

The plan also highlights the need for stronger connection across the basin, ensuring the sector can advocate for its needs and foster collaboration throughout the supply chain.

“The golden thread in this strategy is the importance of the basin dairy sector describing and shaping its future beyond the farm and the factory,” Ms Nieuwenhuizen said.

“No-one can tell this story better than the industry itself and the strategy prioritises building industry coordination across state boundaries, and across the supply chain including industry bodies, processors and producers.”

Murray Dairy chair Rachael Napier said the strategy arrives at a time when many basin dairy farmers are facing the most challenging conditions in more than a decade, underscoring the need for targeted action to preserve farm viability and secure milk supply.

The strategic plan addresses critical issues facing the industry, including:

For more information or to access the full Murray-Darling Basin Dairy Industry 2025 Strategic Plan, visit: https://www.gardinerfoundation.com.au/mdb-dairy-strategy/

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Friday, 19th September 2025

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