Australian milk production plummeted 10.3 per cent in July compared with last year, with massive drops in Tasmania, South Australia and northern Victoria, according to the latest figures from Dairy Australia.
Farmers have slashed production in response to the big cut in milk prices, initially by Murray Goulburn and Fonterra in May and then by most processors in July.
Tasmanian production is hardest hit, down 19.6 per compared with July 2015.
South Australian production fell 18.8 per cent.
Overall Victorian production was down 11.2 per cent, with a 17.7 per cent fall in northern Victoria, 8.7 per cent fall in Gippsland and 8.0 per cent fall in western Victoria.
Production fell 7.2 per cent in New South Wales and 0.4 per cent in Queensland.
The only state to show growth was Western Australia with production up 1.4 per cent as some farmers react to growth incentives in their current contracts.
Source: Australian Dairy Farmers
