Report 17 – Released on April 23, 2020

AUSTRALIA:

July 2019 – February 2020 milk production in Australia decreased 2.6 percent from the corresponding previous period, according to Dairy Australia. February 2020 milk production,618.4 million liters, was 8.1 percent higher than February 2019. More detailed production data are in the table which follows.

AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July 2019 - February 2020

                            Million Percent Change   Percentage
     State                  Liters  From 1 Year Ago  Milkfat Protein

     New South Wales          715.3  -5.6            3.97    3.24
     Victoria               4,045.7  -2.2            4.44    3.44
     Queensland               218.0 -13.1            3.97    3.25
     South Australia          330.3  -4.4            3.99    3.32
     Western Australia        246.6  -3.7            3.99    3.20
     Tasmania                 674.4  +3.3            4.47    3.57
     Australia (Total)      6,230.3  -2.6            4.32*   3.41**

     *  -3.0 percent from prior year period
     ** +3.1 percent from prior year period

     Data from Dairy Australia

Australia is moving toward the end of the current production season. The preponderance of the seasonal milk has already been produced. After a challenging start to the season, milk production has been steadier in recent months, even if lower than last season so far. Rain in many areas has helped to partially counter the early season impact of drought and fires.

Observers in Australia say that the season is far enough along that COVID-19 will not likely be a factor affecting the supply of dairy products. Yet to be determined is the seasonal impact of face-to-face trade activities, shipping, and distribution. New cases of COVID-19 have been dropping in Australia. As a result, the government is considering relaxing some restrictions next week.

NEW ZEALAND

March 2020 New Zealand milk production reported by DCANZ was 1,680 million MT, down 1.9 percent from March 2019 milk production, 1,713 million MT. March 2020 milk solids, 161,619 million kg, are up 0.1 percent from March 2019, 161,433 million kg.

New Zealand’s dairy industry is structured to require significant dairy product exports to move production and, thus, maintain milk pay prices. There is widespread anxiety in New Zealand about the increasingly unusual COVID-19 related factors in U.S. and European dairy markets as that may impact New Zealand’s export opportunities. Some economists are concerned about increasing potential for stressfully lower milk pay prices next season, which begins this summer.

Continuing dry weather impacts in New Zealand also remain a concern. Long range weather forecasting does not offer significant hope for meaningful improvement in coming months.Feed to get through winter is tight. Continuing challenges lie ahead for the dairy industry in New Zealand.

     Information for the period April 13 - 24, 2020, 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
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