AUSTRALIAN milk prices are likely to fall with the removal of a levy introduced to help dairy farmers adjust to deregulation. 

The Dairy Industry Adjustment Program, established in 2000, was financed by a levy of 11 cents a litre on fresh milk sold in Australia.

The scheme was brought to an end today with the Senate passing the Dairy Adjustment Levy Termination Bill 2008.

The adjustment program helped some 13,000 dairy farmers over its eight-year life.

AAP