Oceania Dairy Market Overview
Report 7 – Released on February 14, 2019
AUSTRALIA:
Temperatures in some areas still exceed 100 degrees Fahrenheit. The extreme temperatures noted two weeks ago are less intense. Hotter current temperatures tend to be in Eastern Australia. Perth has reached the low 90s, while Melbourne is better, in the 60s. There are mixed results from strong winds that have developed. Victoria ande Tasmania have benefitted from rain. Near Canberra the wind has brought severe dust storm which resulted in health warnings and power outages. New season hay is being made in most regions of Australia. Western Australia tends to have the best growth. Northern Australia has limited new season hay. That has resulted in hay being brought to the region from other parts of Australia. Southern Australia has limited carryover hay, so new hay is eagerly sought. Drought related government subsidies continue to be available for transporting fodder, water and livestock. Hay exports continue to come primarily from Western Australia.
NEW ZEALAND:
A mild summer continues to benefit the dairy industry in New Zealand. New Zealand has generally not experienced temperatures above the mid-80s. The North Island and some of the South Island received about one half inch of rain. The rest of the South Island received intense showers leaving several inches of water. There is some anxiety within the dairy industry about changes that may come to dairy farming practices in New Zealand from the Zero Carbon Act, anticipated to be introduced early this year for consideration to become law. The magnitude of the dairy industry in New Zealand is expected to result in standards that will necessitate as yet to be determined actions to reduce carbon emissions resulting from dairying. Some observers are braced for a substantial upheaval in current practices. An obvious uncertainty is how production volumes and production costs will be affected.

