April 7, 2005

Drought drying up Australia's milk production

Drought in Australia has reduced supplies of cattle feed, and caused milk production to fall to a seven-month low.

Dairy processors, including National Foods, Warrnambool Cheese and Butter Factory Co and Bonlac Foods, received 759.5 million litres of milk in February, down 2.6 percent from January.

Exports of dairy products have fallen, and with Australia being the third largest cheese exporter, international dairy prices have shot up.