883 million litres of milk

Around 90 per cent of Tasmania’s 883 million litres of milk is used for manufacturing into cheese, milk and whey powders and chocolate products. The remaining ten per cent supplies the local fresh milk market.

Milk Companies Products
Fonterra Milk powder, cheese, whey powder, butter
Lion Dairy including King Island Dairies Fresh milk, cheese, butter, cream
Cadbury Mondelez Chocolate products
Murray Goulburn Milk Powder, UHT milk
Betta Milk Fresh milk, cream

Mondelez International (Cadbury)

Mondelēz International owns the Cadbury brand globally, manufacturing confectionary products in most markets. In Australia, Cadbury Enterprises have suppliers in the North and North West of Tasmania and procure approximately 10% of Tasmania’s dairy intake.

Milk is transported to the Burnie plant where its concentrated and transported to the Claremont factory and used to manufacture Cadbury’s broad range of confectionary products. Mondelēz Burnie also manufacture Sweetened Condensed Milk for their internal domestic and export markets.

Cadbury commenced milk collection in the north of Tasmania in 1948 and demands for milk continue to grow to meet confectionary demand.


Fonterra is a global leader in dairy manufacturing. The farmer-owned co-operative is the largest processor of milk in the world, with a network spanning more than 140 countries and producing more than two million tonnes of dairy ingredients, value added and speciality ingredients and consumer products every year.

In Australia, Fonterra operates 11 manufacturing sites across Victoria, New South Wales and Tasmania – at Wynyard, Spreyton and Tamar Valley. Fonterra collects around 1.6 billion litres of milk annually from almost 1,300 farmers suppliers and their 300,000 dairy cows.

This milk is made into the many Fonterra dairy foods that generations of Australians have grown up with and love, including Perfect ItalianoTM, MainlandTM and Western StarTM .

Specifically in Tasmania, the high quality milk sourced from valued local Suppliers also goes into making some of Tasmania’s favourite dairy products, including the multi-award winning, iconic Duck River Butter. This Tasmanian milk is also made into high-value dairy ingredients that are sold to many of the world’s leading food companies, both on the domestic and international market.

Fonterra also operates a dedicated sales channel for the foodservice industry, providing a full range of dairy products specifically designed for commercial kitchens. It is the number one provider of dairy foods in this sector.

Fonterra has a strong focus on operating a sustainable supply chain and has growth strategies in place in the Tasmanian region. Fonterra is looking to increase its milk volumes in Tasmania in order to meet strong demand for high-quality dairy products from its export customers.

*Used under licence by Fonterra Brands (Australia) Pty Ltd. ® Registered Trade Mark of Société des Produits Nestlé S.A. Vevey, Switzerland. NUTRITIONAL COMPASS®

Lion Dairy and Drink

Lion Dairy and Drinks (Lion) operates three plants in Tasmania, cheese plants at Burnie and King Island and a liquid milk packaging plant at Lenah Valley I Hobart. Trading under the Pura brand it is the larger of Tasmania’s two liquid milk processors.

Lion completed a significant investment in its Burnie cheese plant in 2015, establishing a state of the art facility. The Burnie factory has around 95 suppliers and produces a range of specialty cheese including: gouda, cheddar, gruyere and cream cheese.

King Island Dairies has around 13 suppliers and produces cheddar, soft cheeses, blue cheeses, yogurt and cream. These are mainly sold on the Australian domestic market.

Betta Milk

Betta Milk Co-op Society Ltd produces fresh milk products (milk and cream and custard) and has around 30 per cent of the local market for those products. It uses around two per cent of Tasmania's total milk production but does not buy milk directly from farm suppliers.

Murray Goulburn Co-operative


Murray Goulburn Co-operative (Murray Goulburn) operates a state-of-the-art, $80 million milk processing facility at Smithton.

It produced its first milk powder at the Smithton plant in mid-September 2012.

Since then, full cream milk powder, skim milk powder and anhydrous milk fat have been produced for export to the Middle East and Asia.

There is a growing international demand for high quality dairy products and Tasmania is becoming increasingly recognised in the international market as a high quality supplier of dairy food ingredients.

With processing capacity of between 250 million and 300 million litres of milk per annum, TDP has the potential to produce up to 40,000 tonnes of dairy product.

Edith Creek

Murray Goulburn operates an Ultra Heat Treated (UHT) food and beverage packing plant at Edith Creek producing a range of Devondale dairy products.

Farm Cheese Operations

There are a number of farm cheese operations throughout the state. These include:

  • Ashgrove - Elizabeth Town (near Deloraine)
  • Hillwood - East Tamar (near Launceston)
  • Lacrum - Smithton
  • Elgaar - Elizabeth Town (near Deloraine)
  • Pyengana - Pyengana (near St Helens)