During the latter half of 2006, global dairy prices for major commodities, particularly nonfat dry milk (NDM), have accelerated upwards. While drought in Australia is cited as a factor, it is likely that lower production and subsequent drop in EU-25 exports has been a much more relevant factor. Since 2003 through 2006, EU-25 NDM production declined by 351,000 tons; Australian production has remained mostly stagnant.