Report 41 – Released on October 8, 2020

AUSTRALIA:

An organization representing dairy producers in Australia just projected that seasonal milk production will increase. Outcomes of this season are expected to be the best in three ears. Factors cited include favorable weather, lower input costs, and relatively firm farm gate milk prices.

Legislative hearings examining performance of the dairy industry and the Australian Dairy Plan are ongoing. The perceived conflict was voiced by some representatives of dairy producers who believe dairy processors have too much power over dairy advocacy entities.Related to this is the issue of whether dairy processors are not fairly financially funding advocacy entities in comparison to dairy producers. A final report is expected in early 2021.

NEW ZEALAND:

Dairy manufacturers are generally pleased with the strong start to the milk production season, but some believe early gains may ease moving later into the season. Last week storms brought snow and freezing temperatures to parts of the South Island, which temporarily disrupted milk production. Production has bounced back and is not expected to have much of an impact on the overall season. A side benefit was that the storm brought much needed rain to the rest of New Zealand, where September has been drier than what dairy producers wanted.

A large dairy cooperative announced selling a significant stake in two China dairy farm hubs. The proceeds will be used in New Zealand to pay down debt and fund focusing on more profitable opportunities.

The results of a survey conducted by a major agricultural lender found that new farmer confidence has declined. Fewer farmers expect the economy to improve during the next 12 months.