The Murray-Darling Basin Dairy Industry Steering Committee today launches the Murray-Darling Basin Dairy Industry 2025 Strategic Plan – a comprehensive blueprint designed to strengthen the competitiveness, sustainability, and prosperity of the dairy sector across the Basin and beyond.
The Murray-Darling Basin (MDB) is home to more than 8,400 irrigated agriculture businesses, producing over $30 billion in food and fibre annually. Dairy is a cornerstone of this economic engine, supporting thousands of jobs, underpinning local communities, and playing a vital role in both domestic and international supply chains.
Lindy Nieuwenhuizen, Chair of the Steering Committee and CEO of the Committee for Greater Shepparton, said:
“It has been a privilege to chair the Steering Committee undertaking the ambitious challenge of developing a strategy to secure the future for the dairy industry in and across the Murray-Darling Basin. Over the course of this journey, it has become clear that the volumes of milk produced in the MDB vastly underestimate the region’s strategic importance – to the entire Australian dairy industry, and to other agricultural sectors, and the communities that rely on them.”
Rachael Napier, dairy farmer and Chair of Murray Dairy said, “The strategy arrives at a time when many Basin dairy farmers are facing the most challenging conditions in over a decade, underscoring the need for targeted action to preserve farm viability and secure milk supply.”
The strategy identified three core insights that underpin the importance of dairy in the MDB:
- Australian dairy needs the Murray-Darling Basin: The Basin anchors national milk production, processing and supply to domestic and international markets.
- Irrigation network users need dairy: Other ag sectors, communities, and environmental and cultural water managers all benefit from dairy’s ability to smooth demand and boost system efficiency in normal seasons and switch in extreme seasons.
- Dairy needs community: The future of the industry relies on strong partnerships with local communities and stakeholders to deliver the workforce, services, and infrastructure required for ongoing success.
The Strategic Plan is the first to take a whole-of-supply-chain view, focusing on the unique challenges and opportunities of the MDB. It addresses critical issues facing the industry, including:
- Climate and water policy reforms: Adapting to climate change and evolving water management is essential for sustainable production and risk management, with ongoing policy uncertainty and the prospect of further non-strategic water buybacks undermining investor confidence at all points of the supply chain.
- Energy reliability and transition: The industry faces rising energy costs and reliability concerns, with a pressing need to invest in renewables and grid infrastructure to remain competitive.
- Workforce and skills: Attracting, training, and retaining a skilled workforce is vital as the sector transitions to more technologically advanced and intensive operations.
- Community and infrastructure: The dairy industry is deeply interwoven with regional communities, requiring strong partnerships to deliver housing, health, education, and transport services that attract and support workers and their families.
- Research, innovation, and technology: Continued investment in R&D is crucial to drive product innovation, improve sustainability, and meet changing consumer preferences1.
Ms Nieuwenhuizen continued: “This strategy is a call to action for communities, service providers, and governments. 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 MDB, 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 MDB dairy sector describing and shaping its future beyond the farm and the factory. 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,” Ms Nieuwenhuizen said.
The Strategic Plan sets out clear priorities and actions across five key themes: Promote and connect, People and Workforce, Sustainability, Research and Innovation, and Profitability and Business Confidence. It calls for a united effort from industry, government, and community stakeholders to ensure the MDB dairy sector continues to deliver economic, social, and environmental benefits for generations to come.
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/