Australian market Milk production held up remarkably well in the face of the drought conditions that affected nearly 90% of Australia's dairy farmers during the 2006/07 season. However, it came at a significant financial cost to dairy farmers, with around half sustaining farm cash losses and average dairy farm debt now at more than half a million dollars, according to Peter Wilson, Dairy Australia's industry analyst - Australia. Significant increases in opening farmgate prices for the 2007/08 seasonhave recently been announced in both northern and southern dairy regions. Increased milk prices from local manufacturers and the removal of all remaining European Union export subsidies may help Australian dairy farmers recover from the effects of drought.
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