Article Summary: Dairy farming is an essential component of the agricultural industry and plays a vital role in the diet of the world’s population and the economy of many countries worldwide. And you're probably farming in one of them! But which countries are the top dairy producers regarding volume and quality? It's a question often asked by internet users worldwide and one we thought was worth exploring in our latest blog. We also uncover how Australia's dairy industry compares and the opportunity to be a top producer with some core strategies in place.

Dairy farming is an essential component of the agricultural industry and plays a vital role in the diet of the world’s population and the economy of many countries worldwide. And you're probably farming in one of them! But which countries are the top dairy producers regarding volume and quality? It's a question often asked by internet users worldwide and one we thought was worth exploring in our latest blog. 

With the assistance of top sites, including reports from the United Nations' Food and Agriculture Organization (FAO), the International Farm Comparison Network (IFCN), and industry publications such as Dairy Global and Dairy Reporter, we bring you the list of best dairy producers in the world!

And at number one is no surprise...

1. New Zealand

New Zealand is top for dairy farming because of its optimal climate, abundant water resources, and excellent pasture-based system. With over 4.9 million dairy cows, New Zealand produces around 21 billion litres of milk annually, accounting for approximately 3% of the global milk supply. The country's highly efficient dairy industry focuses on producing high-quality, grass-fed milk. 

Optimum ‘maritime’ climate

New Zealand's temperate maritime climate is ideal for dairy farming activities. The country experiences mild temperatures, high rainfall, and long summer daylight hours, allowing for optimum grass growth—and moist, nutrient-rich soil. The favourable climate provides an ideal environment for cows to graze in the paddocks throughout the year, with lush, green pastures regenerating constantly. 

Plentiful water supply

New Zealand has abundant fresh water, which is essential for dairy farming. The country has over 400,000 kilometres of rivers and streams and 3,820 lakes. This abundance of water resources enables dairy farmers to irrigate their land and provide their cows with a constant supply of fresh water.

Best-in-class pasture-based system

New Zealand has a highly efficient pasture-based dairy farming system. The country's dairy cows graze on high-quality, nutrient-dense grass, which provides them with the essential nutrients they need to produce high-quality milk. The pasture-based system also reduces labour costs, as cows obtain nutrition from available pasture rather than supplements and grains.

Its biggest challenge, however, is to keep up with global demand!

2. Denmark

Denmark is another top country for dairy farming, known for its high-quality milk and advanced technology. With over 567,000 dairy cows, Denmark produces approximately 5.7 billion litres of milk annually.  That's a lot for a relatively small population of under 6 million! Denmark's dairy industry is innovative and specialised, with a focus on producing high-quality milk through advanced technology and efficient production systems.  

Technology innovators

Denmark is a world leader in advanced technology for dairy farming. The country has developed highly efficient milking and feeding systems and advanced breeding techniques that ensure the production of high-quality milk. Using advanced technology also allows for reduced labour costs and increased production efficiency.

Consistent high-quality

Thanks to rigorous testing and quality control, Denmark's dairy farmers adhere to strict regulations ensuring safe and high-quality milk production. In addition, Denmark's dairy industry is committed to sustainable farming practices.  

Efficient production systems

Denmark's highly efficient dairy industry aims to reduce production costs while maintaining high-quality milk production. The country's dairy farmers use advanced management techniques and technology to maximise production efficiency and minimise waste. This efficiency allows for increased profitability for dairy farmers and a competitive edge in the global market.

3. The Netherlands

Like its neighbour, Denmark, The Netherlands is a top country for dairy farming, with a highly efficient and technologically advanced dairy industry. With over 1.7 million dairy cows, the country produces approximately 12 billion litres of milk annually. Its focus on innovation and sustainability and its high-quality milk production sees the Netherlands' dairy industry as one to aspire to.

Powered by tech and innovation

With a focus on innovation and automation, the Netherlands have developed advanced milking, feeding, and herd management systems that optimise production efficiency and reduce labour costs. The use of technology also ensures the production of high-quality milk through precise and accurate monitoring and testing.

Sustainable farming at its core

The Netherlands' dairy industry is committed to sustainable farming practices, working on reducing environmental impact and improving animal welfare. The country has developed innovative solutions to reduce greenhouse gas emissions, encouraging the use of renewable energy and enhancing manure management with ingenious ways to reuse and compost. The Netherlands' dairy farmers also adhere to strict animal welfare regulations, ensuring their cows are well-cared for and healthy. They set the benchmark in this area. 

High-quality milk producer

Like its northern European counterparts, The Netherlands' dairy industry is known for its high-quality milk production, ensuring their milk is safe, pure, and free from contaminants. The country's dairy farmers adhere to strict quality control measures, ensuring that their milk meets the highest hygiene and safety standards enforced by their government. These approaches have seen The Netherlands emerge as a leading exporter of dairy products in the global market.

So how does Australia's dairy industry compare, and is there an opportunity to be a top producer?

Australia has a well-developed dairy industry, and while it may not be currently considered a top producer, it has the potential to become one with the right investments and strategies in place.

The strengths of Australian dairy 

First of all, the country's climate and water resources are ideal for dairy farming. The temperate climate means pasture growth is consistent year-round, providing essential nutrition for dairy cows. And with abundant water resources, including rivers, dams, and groundwater, farmers have plenty of water for irrigation and cow drinking water.

But it's not just about the natural conditions—Australian dairy farmers like you are also embracing technology and innovation to improve efficiency and milk quality. Automation and robotics are becoming more common in the industry, making operations more efficient and reducing labour costs. Plus, herd management systems allow for precise monitoring and testing of cows, leading to higher quality milk and greater efficiency. Using home-grown technology like’s farm management applications, we’re becoming a world leader in AgriTech.

And let's not forget about sustainability and animal welfare. Australian dairy farmers are committed to reducing their environmental impact and ensuring their cows are well-cared for. Innovative solutions like renewable energy sources and improved manure management are helping to reduce greenhouse gas emissions. And strict animal welfare regulations ensure that cows are healthy and happy.

Opportunities for the Australian dairy industry to be world-class

Here’s what the dairy industry, and you, can focus on to help lift Aussie dairy in the global stakes.

Research and development investment will provide opportunities for our industry to become more innovative and competitive with the top-producing nations. Putting more money into researching new technologies, genetics, and breeding will ultimately lead to higher milk yields, better disease resistance, and more efficient production methods. 

Improving supply chain efficiency will undoubtedly have a knock-on effect and could help Australian dairy farmers to reduce costs and increase competitiveness. Improving logistics, transportation, and processing could help farmers to get their products to market more quickly and at a lower cost. Of course, there are challenges here, especially with the great distance between major cities and regional centres.

Developing new export markets could help to increase demand for Australian dairy products and boost the country's dairy industry. Australia already exports dairy products to many countries, including China, Japan, and Southeast Asia. Still, there is potential to expand into other regions, such as the Middle East and North Africa.

Overall, Aussie Dairy is a well-developed industry with the potential to become a top producer with the right investments and strategies in place. Our favourable climate, abundant water resources, advanced technology, sustainable farming practices, and high-quality milk production all provide a strong foundation for future growth. By focusing on research and development, supply chain efficiency, and developing new export markets, the Australian dairy industry can continue to innovate and remain competitive globally.

Until we meet again, Happy Dairying!

- The Dedicated Team of, 2023-04-11