Aussie milk production seen falling as processors slash farm-gate prices

Sydney

AUSTRALIA milk production will fall during the 2016/17 season after processors in the world's fourth largest exporter slashed prices paid to suppliers, forcing farmers to slaughter cattle, analysts said on Monday.

Global milk prices have tumbled 60 per cent since early 2014, due to a global supply glut, and lower Australian production may alleviate some pressure, said analysts.