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Australia’s dairy industry has entered a period of recovery after two challenging seasons, with modest growth in national milk production anticipated, according to Dairy Australia.

In its latest Dairy Situation and Outlook report for 2017, it covers the outlook for the industry, as well as the sales success of different dairy categories in the 12 months to September 2017. Here’s a quick review of what’s happening in each sector.

FLAVOUR OF MILK

Flavoured milk is the star category, with sales continuing to grow strongly. Volumes sold in the 12 months to September grew by 6.8 per cent to 137.3 million litres, while the sales value of the category grew by 5.9 per cent to $488.3 million.

“Flavoured milks enjoy a higher unit price, are not subject to the same level of competition from private label brands, and have seen a lot of NPD and marketing campaigns by beverage companies,” Dairy Australia says.

“Flavoured functional and sports nutrition drinks also represent an area of increased interest, with new product innovations and offerings from dairy companies.”

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