Milk production has slumped by more than 10 per cent in dairy regions impacted most by drought.
The latest figures from Dairy Australia reveal big production drops in northern Victoria, Queensland and NSW.
The hit in the drought regions saw national milk production fall 3.3pc, both for September and year to date.
Northern Victoria has been hard hit by worsening conditions region and skyrocketing water prices.
Production there was down 13.7pc for September and 8.8pc year to date.
Production slipped by 10.5pc in Queensland and 10.2pc in NSW in September.
This amplified the trend from earlier in the season, with year-to-date (July-September) production down 8.9pc in Queensland and 8.8pc in NSW.
But some regions defied the national trend.
South Australian production was up 7.7pc for September and 5.8pc year to date, while Tasmanian production was up 7.1pc for September and 5pc year to date.
Western Victoria appears to be recovering with September production up 1.7pc, while year-to-date production is down 1.6pc.
Eastern Victorian production was down 1pc for September and 0.4pc year to date.
The big slump in northern Victoria saw production for the state fall 4pc for September and 3.4pc year to date.
Western Australian production was slightly down, 0.5pc for September and 1.5pc year to date.
The September figures were released the day after Dairy Australia's Situation and Outlook report forecast milk production for 2018-19 to fall to a 23-year low of 8.6-8.8 billion litres.
That forecast would mean a 5.4-7.5pc fall for the year, so suggests milk production is expected to fall even more dramatically in coming months.