AUSTRALIA'S milk production fell 3.7 per cent for the month of February.
Milk production was 646,908,000 litres, dipping slightly below production for the same month last year of 671,671,000 litres.
According to the Dairy Australia data, the biggest drop was in Victoria, where production fell 7.3 per cent.
This meant the state produced 62.8 per cent of Australia's milk for February, down from 65.2 per cent in February last year.
In contrast, over in Western Australia, which produced 3.7 per cent of the country's milk for the month, milk intake increased by 11.6 per cent, to 23,890,000 litres.
Tasmania's share of milk production increased to 8.8 per cent, from 7.9 per cent for the same month the year before.
There was an 0.5 per cent drop in milkfat percentage across the country, compared to February last year.
Victoria's milkfat increased 0.3 per cent to 4.40 per cent this year, compared to 4.39 per cent the year before.
Australia's protein percentage also dropped for February this year.
The country was down 0.2 per cent, with the same change recorded in Victoria.
Across the state, northern Victoria recorded the highest production change, a drop of 15 per cent, compared to February the year before.
In the east production dropped 5.7 per cent, but increased 0.3 per cent in the Western District.
For the year to date, Victorian production was up 1.8 per cent, compared to last year. The Western District increased 3.2 per cent, and the eastern region was up 4.3 per cent. The only drop, of 2.5 per cent, was recorded in northern Victoria.
Dairy Australia strategy and knowledge manager Joanne Bills said the overall drop in milk production was partly to do with the extra day in February last year.
However, even if February last year had the same number of days as this February, production would still have dropped 0.6 per cent.
Ms Bills said she was not surprised by the decrease, because of the poor season and reduced milk price.
Dairy Australia has forecast annual national production will reach 9.2 billion litres.
This is been based on a budget deficit of 4-15 per cent from now until June.
Tatura Milk milk supply manager Stuart Brown said that on a year-to-date basis the company had been "holding pretty well" and March would be the first month milk supply would fall behind last year's corresponding month.
Butterfat and protein levels have been higher than last year.
This year Tatura Milk has recorded butterfat levels of 4.66 per cent, compared to 4.4 per cent this time last year.
Mr Brown said the high level had a lot to do with good cow condition early in the season, as well as a boost to many herds' fibre intake, as farmers opt to decrease grain feeding.
Tatura Milk protein levels have remained the same as last year, at 3.4 per cent.
Murray Goulburn said its year-to-date milk intake was up 1 per cent.
