Originally published by McPherson Media Group of Yarrawonga Chronicle
06.05.2026
Australia has long been recognised as a producer of some of the highest quality dairy products in the world.
This is not by chance. It is the result of generations of farming knowledge, careful land stewardship, continual reinvestment and a deep sense of responsibility to produce safe, nutritious food for Australia and for global markets.
In our business we see this legacy every day — in the paddocks, in the herd and in the people who turn up, without fail, seven days a week.
Farming is not simply an occupation; it is a long-term commitment built over decades, often across multiple generations.
However, that legacy is now under increasing pressure.
Across the industry, there is a growing concern that the current operating environment is becoming progressively more difficult — not because of a lack of capability, innovation or willingness to adapt, but due to an accumulation of external pressures. Rising compliance requirements, increasing costs and a complex and expanding tax burden, all of which are steadily eroding the capacity for Australian agriculture to remain globally competitive and, even worse, to maintain operations.
There is a broader sense the policy environment is shifting in a way that places disproportionate strain on private enterprise — particularly in agriculture, where businesses are not only commercial operations but also custodians of land, livestock and the backbone of regional communities.
In Australia, our average cost of power is about AUD $0.34/kWh (2023-2026 average), which is well above the world average of $AUD $0.23/kWh and highlights just one of the many challenges that need to be overcome to pursue export opportunities.
With a national debt expected to hit more than $1.25 trillion by 2028, the interest payments alone on this are forecast to be $64.5 billion, being 2.1 per cent of GDP, more than our entire defence budget!
Our level of regulation is one of the highest in the developed world with about 450 new laws introduced and well over 5000 new regulatory burdens since the 2022 Federal Election, costing $160 billion annually.
Alarmingly our living standards have decreased at a faster rate than any other country in the OECD since 2022 with our disposable income dropping at the fastest rate in the world; other countries have seen an average increase of 6 per cent across household incomes (Australia’s dropped 9 per cent in this time same period).
This economic turmoil has been a high price to pay in Australia with almost 15,000 business insolvencies in 2024-25, the majority small businesses.
It’s not hard to see why the business sector is more than worried and particularly agriculture, over half of whose operators are recorded as being small business and 99 per cent of which are family-owned and operated.
Farming in West Australia already carries unique challenges.
Farmers do not expect conditions to be easy. They adapt, problem-solve and continue — because the work matters.
They work around unpredictable rain, hail and heat.
The cows still need to be fed, water needs to be pumped, fences need repairing, hay must be seeded, harvested and rolled when conditions allow. This happens every day of the year — regardless of weather, markets or policy settings.
What is becoming increasingly difficult, however, is sustaining this level of commitment in an environment where margins remain tight, costs continue to rise and the regulatory and financial burden continues to expand.
Despite all of this, the industry continues to deliver.
Australian dairy farmers remain focused on producing food of exceptional quality — often exceeding global standards — while maintaining strong animal welfare, environmental stewardship and food safety practices. This is something that should be recognised and supported.
There is a broader national context to consider. About one per cent of Australians are farmers.
For many, the realities of agricultural production — the infrastructure required, the time involved and the level of investment — are largely unseen. Yet the output of this system is relied upon every day.
Ultimately one per cent of our population takes the responsibility of feeding the nation, as well as producing for export and generating income for Australia.
The opportunity for Australia remains significant. With the right settings, the country is well-placed to continue leading in premium food production, innovation and profitable agriculture.
The capability exists. The knowledge exists. The commitment certainly exists.
What is required is a policy and economic environment that enables, rather than constrains, that potential.
Productivity and unshackling business to get on with things is critical now, possibly more than ever before.
We remain optimistic about the future — but clear-eyed about the challenges. The resilience of the sector is strong, but it should not be taken for granted.
Supporting Australian agriculture is not simply about preserving an industry. It is about ensuring the continued ability to produce high-quality, safe food, maintaining regional communities and retaining our nation’s sovereignty.
The foundations have been built over generations.
It has been made very clear that when the chips are down (such as during global crises akin to COVID and war), the independence of a country with regards to food, water and energy is critical for the survival and the welfare of its people.
Farmers have an innate ability to find solutions and dig deep, however being faced with unnecessary challenges and constraints imposed by government and baseless ideologies has taken the impediments to the next level and the writing is on the wall, certainly in dairy farming with farm exits and declining production levels across the industry.
This is pronounced in WA where we have seen our industry reduce by 80 per cent since 1999 to less than 99 operators in just 25 years.
It’s time to decide how we want this to look in the next 25 years.
The question now is whether we create the conditions for those hard-earned foundations to grow — or force them to continue to be eroded.
