Sub topics

• Farm Sector
• Milk Companies
  • Fonterra
  • Cadbury Schweppes
  • National Foods
  • Classic Foods
  • Betta Milk
  • Farm Cheese Operations

Farm Sector

Farm Numbers and Production

Dairy farm numbers in Tasmania have declined over time but increases in farm size and production per cow have resulted in an increase in total milk production.

A peak in milk production in 2001-02 was associated with high milk prices, low grain prices and excellent seasonal conditions. In 2002-03 and 2003-04 milk prices fell, but since then there has been a strong recovery and prospects appear good.

The average number of cows per farm has increased from around 100 cows in 1990 to 270 in 2006. This is a result of smaller farms exiting the industry and other farms increasing in size.

The increase in total cow numbers in Tasmania has levelled off in recent years, but production per cow has continued to grow. The increase per cow is a result of better feeding with increases in irrigation and nitrogen application, and increased grain feeding.

Dairy Regions in Tasmania

Dairy farming occurs throughout Tasmania, but predominantly across the north of the state. The three main regions are the North West, North and South. However, because of the way in which climate and soils in Tasmania can vary over relatively short distances, these three main regions can also be split into a number of sub regions or areas.

North West Dairy Region

The north west region consists of three main areas that are distinguished by differing climates and soil types:

1. King Island
2. Far north west
3. North west

1. King Island

King Island has an ideal dairy climate with rainfall of around 900 to 1,000 mm and very few frosts. Currently there are around 25 dairy farms and one milk company King Island Dairies, which is owned by National Foods, on the island.

Currie with a population of 800 is the main town.

King Island is characterised by light textured soils ranging from sandy loams to sands. The majority of dairy farms are located on the sandy loams, with the lighter country serving as run-off and for beef production. Drainage is an issue with some soils and there are a few pockets of salinity.

There is limited opportunity to irrigate because there are no large streams, and the topography is flat to slightly undulating. Some irrigation is present where suitable dam sites or underground water can be found.

2. Far North West

The Far North West is generally considered the best dairying region in Tasmania and as a result a large proportion of the state's dairy farms are concentrated there. Rainfall varies from around 1,000 to 1,200 mm and there are relatively few frosts.

The main population centre is Smithton (Population 3,150).

Milk is supplied to Fonterra, Cadbury Schwepes, National Foods and Classic Foods.

There are two main types of dairy farms: "reclaimed swamp farms" which tend to be the most sought after, and "red soil farms" most of which require irrigation for reliable production. Some dairying also occurs on sandy soils and sandy loams.

Much of the reclaimed swampland was originally drained via community drainage schemes. Hump and hollow drainage is commonly used to get water off more quickly. Many of the farms on the reclaimed swamps are not irrigated and have historically achieved similar production to irrigated farms in other areas of the state.

The so-called red soil farms occur on ferosols that have developed on basalt rock. These tend to be at slightly higher elevation and have good natural drainage. They are also well suited to vegetable cropping and are more likely to be irrigated than the swamp soils.

Dairy farms on sandy loam soils tend to occur along a coastal strip to the west of Smithton.

3. Central North West

The Central North West as defined here is the remainder of the larger North West region and covers the central north west area from Wynyard to Devonport and inland. Rainfall varies from around 800 mm close to the coast to around 1,000 mm further inland.

The major centres in the area are Burnie (population 18,100) and Devonport (population 21,600).

Milk is supplied to Fonterra, Cadbury Schweppes, National Foods and Betta Milk. The main milk processing facilities in the state are located at Wynyard, Burnie and Devonport.

The soils in the area are typically "red soils" or ferosols, although there are pockets of fertile alluvial soils and some grey clay loams. The red soils are free draining soils that have formed on basalt. They are suited to both pasture production and irrigated cropping. Irrigation is generally required for reliable dairy production.

Historically there were many dairy farms in this area, however the numbers have fallen over time due to competition from alternative land uses, particularly higher value vegetable cropping. The more marginal grazing and cropping land has been purchased for timber plantations.

Northern Dairy Region

The Northern dairy region extends from Deloraine in the central north to Gladstone in the north east. Rainfall varies from less than 800 mm in parts of the north east and south of Launceston, to 1,000 mm closer to the central plateau. Winters can be quite cold in some of the inland areas with up to 100 frosts per annum.

There are two main sub regions:

1. Central North
2. North East

1. Central North

The Central North includes the long established dairy areas in the vicinity of Deloraine, and the drier areas in the Cressy-Longford district where generally large properties and available irrigation suggest potential for additional dairying in the future.

In addition to the larger regional centre of Launceston (population 68,500), the main towns are Deloraine (population 2,000), Cressy (population 650) and Longford (population 2,800). Milk is supplied to Fonterra, Cadbury Schweppes, and National Foods.

Soils are variable. For example, in the Deloraine area they range from red soils on basalt (ferosols) to heavy black clay loams, alluvial loams and lighter clay loams. Further to the east (Cressy-Longford) there is also a wide range of soil types but there tends to be more duplex type soils (sandy loam over clay).

In recent years there has been a significant increase in the area that has been cropped under centre pivot irrigation for vegetable crops and poppies. Some of the soils are not suited to continuous cropping and hence there are large areas that could be available for irrigated dairying. The winters are relatively cold and as a result the area is best suited to spring calving.

2. North East

The North East includes more traditional dairy areas on red soils (ferosols) in the vicinity of Scottsdale through to Winnaleah, and the clay loams and alluvial soils at Pyenganna near St Helens. It also includes some newer irrigated dairy developments on sandy soils in the vicinity of Gladstone.

The main centre is Scottsdale (Population 1,900).

Milk is supplied to Fonterra. None of the other dairy companies collect milk from the north east.

Southern Dairy Region

There are currently 22 dairy farms in the south of the state. The numbers of farms have declined over the past 20 years or so with the gradual deregulation of town milk supply. Most of the remaining dairy farms are concentrated in the Derwent Valley to the north of Hobart.

Rainfall in the area is relatively low at 600 to 700 mm, but there is potential for further large-scale irrigated dairy farm development in the area. Because the area is inland, winters tend to be relatively cold and summers quite warm.

The major population centre is New Norfolk (population 5,000), but Hobart (population 126,000) is only 30 to 40 minutes away.

Milk is supplied to National Foods and Fonterra.

There are large properties along the Derwent River that have good water rights and would make good dairy conversions. However, there have not been many such properties change hands in recent years.

The Department of Primary Industries and Water Dairy Branch has a number of support services and programs tailored to the dairy industry. Follow the links from "Food and Agriculture" to "Animal Industries & Welfare" to "Dairy".