The Australian government has given the go-ahead to the creation of a single dairy industry organisation.

The Australian Dairy Corporation and the Dairy Research and Development Corporation are to merge to form a new industry-owned company called Dairy Australia.

The new company will manage around A$35m (US$19.8m) in levy funds and $15m in government research and development funding every year.

Agriculture Minister Warren Truss said the new company would give dairy farmers a far greater say in how their levies are invested, reported Reuters.