The Australian dairy industry sits at crossroads. It hasn't grown, as an industry, over the past decade and has a diminished global standing and reputation. In the Australian domestic market, the dairy news has been dominated by stories of the demise of fresh milk regions due to the 'deep discounting' of private label milk products. As analysed in this article, that situation's influences are more complex. This paper intends to provide elements to understand the factors behind the current challenges and proposes priorities for its future - if it is to get its act together.