Report 29 – Released on July 16, 2020

AUSTRALIA:

Good weather conditions in many regions have helped lead to improved milk collections. This results in heightened optimism for the new season. Recent rains have improved pasture conditions. Concerns are circulating as to the possibility of China imposing tariffs on Australian WMP. This relates to some signs of increasing friction between China and Australia. One outgrowth has been enhanced efforts in Australia to strike free trade deals with the EU and UK during 2020.

NEW ZEALAND:

New Zealand dairy sources expect that average to wetter than average conditions forecast through August 2020 may improve milk yields in some regions and encourage continued herd rebuilding. Milk production is, thus, forecast to increase marginally. Manufacturers hope for increases in milk production to ease competition between processors for milk supplies.Many producers see benefits from competing manufacturers. Concerns remain about market demand imbalances lagging from COVID-19 impacts. This is an unwelcome added risk related top lanning for exports.