Tough conditions in the Victorian dairy industry have cut almost 400 million litres from milk production in the first seven months of the 2009-10 season.
The latest figures released by Dairy Australia show production from July 2009 to end of January 2010 totaled just 3.87 billion litres, down 9.3 per cent (400 million Litres) on the same period in season 2008-09.
That dragged national production 6.6pc (418m Lt) lower to 5.9 bn Lt with Victoria accounting for the vast majority of that lost production.
Even so, dairy exports for the seven months were marginally up on the year earlier at 454,000 tonnes, 9pc ahead, although lower world market prices pushed the value of those exports almost 30pc lower than year earlier returns.