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The dairy industry can be considered a contributor to biodiversity loss in Australia. To address this, many forms of governance can be enlisted, including traditional legislation and regulations, persuasive techniques such as publicly funded subsidy programs or education, and participation in voluntary stewardship programs. This paper explores the benefits of collaborative governance programs, which have international applications to reduce the impact of the dairy industry on biodiversity loss. However, as the Australian sector is unique, the specific opportunities and present challenges are discussed. This paper reports three important objectives that could underpin industry-led initiatives by supporting improved biodiversity conservation on dairy farms: (1) Increase the personal and financial capacities of individual farmers to operate profitable, biodiverse farms; (2) Facilitate market rewards to incentivise pro-conservation behaviours; and (3) Improve the effectiveness of the implementation of biodiversity protection laws and regulatory objectives via collaborative governance arrangements. Existing environmental programs that have been developed by the dairy industry could be suitable for incorporation into more formal co-governance structures sympathetic to biodiversity conservation. However, to be successful in addressing sustainability issues, including biodiversity loss, strengthening the integrity mechanisms around farmers' self-reporting of performance is required to ensure that the industry can credibly refute claims of greenwashing and defend their environmental credentials in the global marketplace. [ABSTRACT FROM AUTHOR]