NSW Farmers Association, Media Release, 11 June 2025

Milk production could plummet by up to 15 per cent in the southern Murray Darling Basin if water buybacks are not halted immediately, a new study has shown.

The Dairy Australia report released on Wednesday revealed Australia’s annual milk production could plummet by up to 270 million litres if the federal government pressed on with water buybacks that would strip dairy farms of vital water supplies.

“The reality’s obvious – our own government is stripping us of the water we need to produce the nation’s milk, and it’s pushing us out the door of the industry,” NSW Farmers Dairy Committee Chair Mal Holm said.

“Input costs have soared and milk prices remain staggeringly low, while the effects of flood, drought and other disasters continue to wreak havoc.

“Water buybacks could be the final straw that breaks our industry, and we need smarter Basin decisions that balance the priorities of the environment, agriculture and our communities, if any of them are to have a future.”

NSW Farmers Water Taskforce Chair Richard Bootle said the Federal Government’s water buyback program must be ceased immediately for the sake of the nation’s broader agricultural industry.

“Water buybacks are making local dairies disappear, and increasingly dairy has to be transported hundreds or thousands of kilometres just to get on shelves,” Mr Bootle said.

“Aussies deserve fresh milk every morning and a coffee or a cheese platter whenever they feel like it – but they soon could be stuck with food that isn’t fresh, isn’t affordable, and isn’t Australian grown, just because our government can’t give our farmers a fair go.

“Stop buying up the Murray Darling, and farming families might just be able to stay in business.”