A world competitive industry

Australian Dairy farmers operate in a completely deregulated industry environment – where the only government involvement is in the setting of food standards and food safety assurance systems. Consequently, international prices are the major factor in determining the price received by farmers for their milk. At an average of approximalty US$15 per 100kg of milk, Australian dairy farmers receive a low price by world standards, and so most operate highly cost-efficient production systems. Reflecting this high level of competitiveness, more than half of Australian milk production is exported to more than 100 countries around the world with Australia 's share of world trade steadily increasing.