January 31, 2005

Australia's spring milk production down

Australia's dairy industry has recorded a significant drop in spring milk production.

The effects of the drought and a shift towards autumn calving are being blamed for the 3.5 per cent fall in milk output in November, compared to the same time last year.

Dairy Australia analyst Peter Wilson says while the results are disappointing, the season is already showing signs of recovery.

"The drop in production was a bit of a surprise to us and most industry players actually; it's disappointing to see a figure of that magnitude in one month.

"Having said that, it looks like the season is holding up a little bit better in December, and conditions suggest that it might early in the New Year as well."

Last week dairy processor Fonterra said it expected a 5 per cent drop in milk collected in New Zealand.