The Australian dairy industry is the third most important rural industry at the farmgate – valued at $3.2 billion in 2006/07 – and the fifth most important in agricultural exports – valued at $2.5 billion. Milk production slipped 5% during 2006/07, under the influence of widespread drought, to 9.6 billion litres. Export returns followed the same pattern, reflecting the availability of product for sale. In the local market, supermarket sales of dairy products continued to increase in volume and value – the retail market for major dairy products totalled more than $4 billion in 2006/07 – with steady price growth across all the major dairy categories.