Report 21 – Released on May 21, 2020

AUSTRALIA:

Air freight dairy product exports from Australia to some countries in Asia typically occur on airplanes also carrying passengers. The sharp decline in passenger flights due to COVID-19 has hindered maintaining air freight dairy exports to meet contract obligations.The Australian government has begun a program to subsidize these exports by facilitating wider use of dedicated freight carrying planes. The logistics are still being worked out.

While dairy trade has moved toward normal as COVID-19 concerns abate, a new dispute is developing between Australia and China, a major customer for Australian dairy exports.Sources in Australia express concern with comments from some Chinese officials, suggesting that China may impose tariffs and other restrictive measures on Australian dairy exports to China if Australia does not back down from seeking an investigation into the origins of COVID-19. Discussions are believed to be underway in an attempt to prevent deterioration of trade relationships.

NEW ZEALAND:

The end of the dairy season in New Zealand is looming closer. Milk production is near the expected low point. Dairy producers await the anticipated June 1 announcement from a large dairy cooperative of the 2020/21 seasonal milk pay price. Some agricultural bankers anticipate a reduction in the previously projected price, due to slowing global economic activity.

New Zealand continues to be very dry. Hopes for more rain leading to better conditions to begin the new season are widespread. But many lenders expect struggles to continue.

An annual dairy industry event in New Zealand is Moving Day. That is when many share milkers fmove cows, equipment, and families, to new farms. This year COVID-19 has led to requiring additional measures to be taken. Records must be kept of everyone involved in moves to permit contact tracing if needed. It is recommended that cows being moved, not be milked during the journey so drying cows is typical.

  Information for the period May 11 - 22, 2020, issued biweekly

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

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