REAL Estate agents are peddling Australian dairy farms to overseas buyers.

Real estate agent Betty Kay, from northwest Tasmania, said the response from dairying nations, including India, Israel and Dubai to Tasmanian farms was "unbelievable."

As the manager of Landmark Smithton, Ms Kay said she had 50 per cent more dairy farms listed for sale now than in August last year.

In a bid to attract buyer interest, Ms Kay began marketing dairy farms overseas including at the World Dairy Expo in China.

Ms Kay said marketing properties internationally could result in more dairy farm sales and could attract investment in the processing sector which could create economic growth.

"The ideal situation is to sell locally in Australia, but if that is not happening, we have to look elsewhere," she said.

Ms Kay said the growth drive in recent years had resulted in farms becoming so large that they were too expensive for other farmers to purchase.

Foreign investment in the Victorian dairy sector is nothing new.

DLS Rural Property Specialists real estate manager Andrew Gilmour said in the past decade, half of the Australian dairy farms sold had been bought by New Zealanders, but interest has come from Malaysia, China, Germany and the Netherlands.

Mr Gilmour has recently returned from the Mystery Creek field days in NZ where he was promoting Australian properties.

"We are working our way through inquiry as we speak, and starting to see that come through in inspections and hopefully sales," he said.

Mr Gilmour said dairy "corporates have started to move" on properties in the dairy industry.

Charles Stewart and Co rural property sales manager Anthony McDonald said NZ buyers represented the majority of international dairy farm purchases in Australia, but inquiry had also come from Europe, UK, South Africa and Zimbabwe.

He said it was a "good idea" to look overseas for buyers, but did not have any plans to specifically market dairy farms for international buyers.

"There isn't sufficient quantity to warrant targeting with specific advertising," he said.

"The internet means that if they want to find us they can find us very easily."