Australian Dairy Farmers Face Challenges from Cheap Cheese Imports

The Australian dairy industry is under significant pressure as local farmers struggle to compete with an influx of cheap dairy imports, particularly cheese, from countries such as New Zealand, the European Union, and the United States. Rising production costs and a demand for more affordable products have exacerbated the issue, according to industry stakeholders.

About 25% of dairy products consumed in Australia are imported, with a notable increase in cheese and butter. Despite domestic farmers producing 387,000 tonnes of cheese last year, cheaper imports are filling the gaps at a faster rate. Michael Harvey, a senior dairy analyst at Rabobank, noted that economic factors often make imports a viable option when domestic products are pricier.

U.S. tariffs under President Donald Trump’s administration could affect international dairy supply chains, but their impact on the dairy sector might not be as profound as on other commodities. The competition from imported dairy continues to erode the market position of Australian producers, according to Janine Waller of the Australian Dairy Products Federation, who called for governmental action to safeguard food security and bolster the local industry.

Retail giants Woolworths and Coles emphasize their support for Australian dairy farmers, claiming that a majority of their dairy products are sourced domestically, even as they strive to provide customers with affordable choices. Nevertheless, Ben Bennett of Australian Dairy Farmers highlighted the increased import reliance as a factor undermining the local supply chain.