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1 Introduction The Australian Dairy Industry consists of five main segments. These being farming, manufacturing, processing, distribution and vending. This analysis will examine these stages/sectors of the industry by covering five broad areas. These topics include the structure of the industry, the production process and production costs, its international involvement, government policies in relation to the Australian dairy industry and finally the industries value to the Australian economy. The Australian dairy industry can be described …

…has decreased. The Australian dairy industry's performance in this environment will depend on its flexibility and adaptability to changing market opportunities. In turn, its ability to respond to these opportunities will be influenced by the domestic dairy marketing arrangements. In conclusion, the Australian dairy industry is one which has undergone immense change in recent years, in which competition has increased causing consumers to witness a reduction in the price they must pay for every-day goods.