Report 45 – Released on November 5, 2020

AUSTRALIA:

A sense of optimism continues to encourage dairy producers in Australia. Many pastures do not seem as dry as last year. More dairy producers are able to grow hay than last year. Hay prices are also lower, benefiting producers who purchase hay. Australian dairy exporters have increased efforts to develop new export partnerships in Southeast Asia, to reduce the dominance of China as an export destination. The countries being focused on include Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. This initiative is described as a balancing of export relationships to generate more diversity and stability.

NEW ZEALAND:

September 2020 New Zealand milk solids reported by DCANZ, 224.952 million kg, nearly double August 2020, are up 1.8 percent from September 2019 milk solids, 220.982 million kg.

September 2020 milk production, 2.708 million MT, nearly double August 2020 2020, is up 1.7 percent from September 2019, 2.664 million MT.Dry pastures in New Zealand are causing increasing concern about a potential hit on milk production. Rain in many areas would be welcome. Another challenge is that many dairy producers report a shortage of migrant workers for dairy farms this season.

There is some nervousness in New Zealand about possible challenges to dairy exports as other countries pull back in response to rising COVID-19 levels. Some customers have slowed current buying, but there is hope that this is only a blip that will be corrected moving forward.

A large dairy cooperative in New Zealand recently entered into a distribution agreement with a US dairy cooperative to help move New Zealand dairy products to US food service customers.