Overview ABARES conducted a comprehensive assessment of dairy farm performance by analysing farm survey data and gathering information and views from dairy farmers and others at a series of regional workshops. The results of this study highlight key performance trends in the Australian dairy industry; productivity growth at industry and farm level by region; drivers of productivity growth; and constraints to future growth. Key Issues * Growth in productivity for the Australian dairy industry has occurred over the past three decades at an annual average rate of 1.6 per cent a year, although rates of growth differ across the regions, reflecting relative changes in regional industry structure, the extent of uptake of new technologies within a region, and the characteristics of each region that affect the types of farming systems used. * Two key drivers of the observed growth in dairy farm productivity have been the exit of relatively less efficient farms from the industry, and the widespread adoption of new technologies and management practices that allowed dairy farmers to reduce the quantity of inputs required to produce a given quantity of output. * Workshop participants identified a wide variety of technologies and management practices that have contributed to productivity growth either directly or indirectly, including improvements to milking shed design and layout, milking equipment, herd genetics, pasture varieties, and feeding systems. Other changes such as improved education and training were also important, but the direct productivity benefits were often less tangible. * Workshop participants also highlighted some constraints likely to face dairy farmers in the future from issues such as animal welfare and the environment. While addressing such issues might generate benefits for society as a whole, required changes to dairy farm operations could constrain productivity growth.