South Australia’s dairy industry: A blueprint for innovation and growth
South Australia’s dairy industry has established itself as a leader in premium food production, driven by innovation, collaboration , and a commitment to sustainability. Through advancements in farming practices, cutting-edge technology, and strong partnerships across the supply chain, the sector has boosted productivity, enhanced value-adding opportunities, and reinforced its position in both domestic and international markets.
A high-performing, future-focused sector
South Australia’s dairy industry is one of the most productive in the country, with yields now double what they were in 1985 and 15% higher than the national average. This growth has been underpinned by the industry’s willingness to embrace new technologies, data-driven decision-making, and sustainable farming practices. The sector’s strong research and development focus – supported by government and industry investment – has positioned it as a leader in climate-smart agriculture, animal welfare, and efficient resource management.
Collaborationdriving expansion and value-adding
The transformation of South Australia’s dairy industry has been made possible through close collaboration between producers, processors, food manufacturers, and government. A prime example of this is the partnership between the Connor family’s Nangkita Dairies and premium fresh cheese producer La Casa Del Formaggio. Operating across four properties on the Fleurieu Peninsula, Nangkita Dairies supplies high-quality milk to La Casa, which in turn produces fresh cheese for thousands of supermarkets and specialty food stores across Australia.
Recognising the need for expansion to meet rising demand, the Connor family invested $2 million in a state-of-the-art robotic milking system. This innovation has allowed them to increase production while improving animal welfare, as cows can move freely and be milked on demand. The ability to make this investment was underpinned by a three-year supply agreement with La Casa, providing long-term security for both businesses.
Building a stronger future for dairy and food manufacturing
The benefits of this partnership extend beyond the farm gate. La Casa Del Formaggio’s growth, supported by its long-term supply from Nangkita Dairies, enabled a $35 million expansion into the Northern Adelaide Food Park at Edinburgh Parks. Developed by the South Australian Government through Renewal SA, the Food Park – backed by a $7 million Business Attraction Fund – has created a thriving hub for food manufacturing and processing. This strategic investment has unlocked new growth opportunities for La Casa, which now employs over 150 staff, and has helped position South Australia as a national leader in dairy innovation and value-adding.
A sector poised for continued growth
Looking ahead, Nangkita Dairies plans to expand its herd to 1,000 cows and increase production from 6 million litres to 8 million litres per year, requiring further investment in robotic milking technology. At the same time, La Casa Del Formaggio continues to scale operations, contributing to the broader success of the Northern Adelaide Food Park – home to major supermarket distribution centres, a $100 million Ingham’s processing facility, and a growing network of transport and logistics businesses.
South Australia’s dairy sector demonstrates the power of innovation, collaboration, and investment in value-adding. By embracing technology, strengthening supply chains, and aligning with government-led initiatives, the industry is not only securing its future but also reinforcing South Australia’s reputation as a leader in premium, sustainable food production.