Industry analysts are concerned with the declining number of Australian dairy farms as a number of large dairy companies are on the market. Australian dairy industry data shows that the number of dairy farms has fallen 71% since the 1980s. In the 1980s there were a total of 21,994 dairies however in 2012-13 this number declined to 6,398. Of particular concern is the state of New South Wales where there are currently 731 registered dairy farms – down from nearly 4,000 in the 1980s. Western Australia’s largest dairy operator Lactanz Dairy, worth approximately $30 million is currently on the market and its four New Zealand-owned farms are in receivership. Raleigh Dairies Farms in New South Wales is also for sale, as negotiations are underway for the sale of Australia’s oldest dairy business Van Diemen’s Land in Tasmania to Fonterra and the China Investment Corp. There is opportunity for growth in the export market to China however the lack of a free trade agreement is a disadvantage. Australia is paying a 10% tariff – in effect giving New Zealand a 10% advantage on the market.
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