The deregulation of the Australian dairy industry in 2000 triggered profound structural, economic, and social changes, leaving many farmers struggling to adapt. This study investigates how social capital shapes the resilience of the South East Queensland dairy industry in a challenging post-deregulation context. Adopting a situated resilience approach, we move beyond generic “resilience thinking” to ground our analysis in the lived experiences and perspectives of dairy farmers, recognizing that resilience is shaped by and experienced differently within specific social, political, and economic contexts. This perspective allows us to capture how power relations, industry structures, and local networks influence both the capacity to adapt and the distribution of benefits and burdens. Using a qualitative case study design, we conducted in-depth interviews to map the types and quality of farmers’ social capital (i.e. bonding, bridging, and linking) and assess how these networks influence their ability to withstand shocks, innovate, and sustain their livelihoods. Findings reveal that strong bonding capital continues to provide critical peer support, bridging capital fuels innovation and market diversification, while linking capital has eroded due to power imbalances and declining trust in institutions. By integrating social capital into a context-specific resilience framework, this research advances resilience theory and offers actionable strategies for policymakers, industry bodies, and communities to rebuild weakened networks and strengthen the long-term viability of the industry.
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