Report 31 – Released on August 1, 2019

AUSTRALIA:

Because late July ą early August is near the seasonal low point of milk production, it is quiet in the Australian dairy processing world. Winter conditions have been mild.

Competition among processors for milk has already resulted in upward movement in recently announced milk pay prices for the new season. A large privately-owned dairy product manufacturer has raised the opening price which was announced in May. The higher price is intended to encourage more milk production by producers who sell to the firm. The enhanced price includes an irrigation rebate for producers in Victoria. An additional feature is a loyalty payment for milk producers who commit to supply milk for three years. Irrigation water costs have become a more significant factor causing some milk producers to reduce herd size and output. Announcing higher prices early in the season, including an irrigation rebate, is hoped to draw increased milk available for processing.

NEW ZEALAND:

Current late July weather conditions in New Zealand are characterized as a bit drier than ideal. However, pasture grass is considered to be in good condition so there is little concern at this time.

June 2019 New Zealand milk production reported by DCANZ was 0.226 million MT, up 14.1 percent from June 2018 milk production, 0.198 million MT. June 2019 milk solids, 19.917 million kg, are up 13.4 percent from June 2018, 17.565 million kg. These percentage changes must be viewed in the context of June being the lowest milk production month of the season in New Zealand.

July is typically the second lowest milk production month in New Zealand. Seasonal dairy production is in the very early stages of building output. To illustrate, during the last full year with reported data, 2018 milk solids production during the highest producing month, October, was over 15 times higher than July milk solids. Whole milk powder is typically the priority production use for milk but at current seasonally low milk output, even many WMP plants are well below production capacity and greatest efficiencies.

   Information for the period July 22 -  August 2, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov