Dairy Australia held its annual general meeting on Friday, where chairman Max Roberts said the industry had seen "enormous changes" in the five years since Dairy Australia was formed.

He said the rising cost of production, driven by unprecedented drought, has seen the industry adapt across the supply chain.

And despite a raft of challenges and the complexity of doing business, farmer confidence is still high, Mr Roberts said.

Stronger demand for dairy, innovative new products and flexible farming systems were behind the optimism.

Dairy Australia's managing director Mike Ginnivan told the AGM of the company’s work to build the industry's skills and capability.

"More than 32,000 people work on dairy farms and more than double that number off farm in other areas of the industry and together they drive this industry by providing the energy and resilience which has allowed us to prosper in the face of all difficulties," Dr Ginnvan said.

"We have increased our investment in people through a variety of integrated programs and activities."

Promoting the health and nutritional benefits of dairy was another key priority this year, Dr Ginnivan said.

Dairy Australia has invested in research to investigate the health benefits of dairy, and has worked with food regulators to ensure any claims about dairy were backed by sound science.

Dairy Australia directors Anne Astin, Geoff Akers and Peter Nankervis retired by rotation, with Mr Akers and Mr Nankervis successfully standing for re-election.

Dr Astin retired and was replaced by new director, Wendy Craik.

Dr Craik is the current chief executive for the Murray-Darling Basin Commission.