THE liquid ‘drinking’ milk market remains of key importance to Australia’s dairy sector – with improved domestic retail pricing and opportunities for further export growth – according to a newly-released Rabobank industry report.

In Australia’s drinking milk markets: from Loss Leader to Improving Performer, the specialist agribusiness bank says the liquid milk category – which in recent years had struggled with a number of challenges including discounting by retailers – is a major “pillar” for Australia’s dairy sector, accounting for 30 per cent of milk production and generating more than $4 billion in revenue annually.