The season started strongly, but the more challenging seasonal conditions that eventuated during the second quarter, combined with a margin squeeze on-farm, are expected to contribute to slow production and make for a difficult 2012-13 season. Below is a brief overview of how dairy category sales are faring at the wholesale level, based on Dairy Australia's December data. Milk: Total domestic milk sales volumes increased 3.1% in the 12 months to December 2012, driven by strong sales of UHT milk, lifting the wholesale value of the category up 2.6% to more than $3.1 billion.
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