Every year, over 700,000 tonnes of milk—enough to fill 300 Olympic swimming pools—is wasted in Australia. This not only costs the dairy industry supply chain millions of dollars but also harms the environment. Now, a groundbreaking research project is turning that waste into valuable products, from animal feed to renewable energy.

Using fermentation—the same process behind beer and bread—scientists from Dairy UP and Macquarie University’s Australian Genome Foundry are finding innovative ways to recycle excess milk. Early experiments are already showing that spoiled milk, excess colostrum, and cheese by-products can be transformed into sustainable products like protein for animal feed and eco-friendly energy sources.

“These innovations could help farmers cut costs and reduce waste,” said lead researcher Dr Juan Gargiulo. “For example, milk that would normally be treated as a waste product due to spoilage could be used to produce valuable protein for livestock feed.”

The research could also have benefits for consumers, such as cheaper groceries and reduced environmental impact. “This is about creating a win-win for everyone,” Dr Gargiulo said.

With 70% of dairy waste occurring during manufacturing, the team is exploring commercial solutions to upcycle products like expired milk and whey. If successful, this project could revolutionise the dairy industry, turning waste into a resource that benefits farmers, consumers, and the planet.