The Dairy Situation and Outlook Report, produced by Dairy Australia, aims to provide a complete picture of the Australian dairy industry each year. The report is based on the results of the National Dairy Farmer Survey, as well as contributions by global dairy market analysts, retail analysts, dairy company management, farm consultants and farm leaders. In this and future issues of Australian Dairy Foods we highlight the aspects of the report most relevant to the post-farmgate dairy sector. Overall,the report is optimistic about the state of the industry in 2006. Product prices in the world market peaked in 2006, translating into returns on the domestic dairy products market. According to he report, farmgate prices, particularly in the south of Australia, have also improved as a result of better export returns and domestic competition.
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