September 3, 2008


Australia's milk output falls 5.6 percent in 2007/08

Milk production in Australia declined 5.6 percent to 9.68 billion litres in 2007/08 that ended in June.


Australian authorities said the figures represent a drop of nearly 9 percent compared to milk production in 2005/06.


Persistent dry weather in 2007 saw farmers reducing herd sizes that led to an 8-percent contraction in the number of cows milked.


However, farm gate prices rose 48 percent in 2007/08, boosting the financial performance of dairy enterprises, according to the Australian Bureau of Agricultural and Resource Economics (ABARE).


The prices are expected to remain high due to tight global supplies and a projected strong demand for the next two years.


ABARE forecast the value of 2007/08 dairy exports to remain stable at AU$2.7 billion, thanks to strong prices.


Thanks to strong prices ABARE predicted the value of 2007/08 dairy exports would remain stable at A$2.7 billion (US$2.2 billion).


Australia is a major global dairy products exporter.

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