Report 35 – Released on September 2, 2021

AUSTRALIA:

At several months into the new milk production season, Australian dairy farmers are stilloptimistic for a strong year. So far, milk volumes are meeting expectations. Much ofAustralia started the 2021-2022 milk production season with adequate rainfall and goodpasture conditions. In addition, meteorologists are forecasting above average rainfall andwarm temperatures for the next few months. Dairy farmers have plenty of forages on hand andfeed costs have been under control.

Like much of the world, shipping delays and port congestion have hampered some dairy exportopportunities. Some shipping companies are omitting the ports of Brisbane, Sydney andMelbourne from their shipping schedules due to port congestion and the need for schedulerecovery. The news is unsettling as Oceania begins peak milk and dairy production seasons.

July 2020 – June 2021 seasonal milk production in Australia increased 0.6 percent from July2019 – June 2020, according to Dairy Australia. June 2021 milk production, 621.4 millionliters, was down 1.1 percent from June 2020. More detailed production data are in the tablewhich follows.

 AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July 2020 – June 2021

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

     New South Wales        1,074.9  +2.0            4.20    3.43
     Victoria               5,646.6  +0.4            4.35    3.47
     Queensland               309.5  -1.9            4.18    3.41
     South Australia          499.4  +2.2            4.14    3.41
     Western Australia        361.9  -0.7            4.08    3.28
     Tasmania                 961.0  +1.2            4.85    3.75
     Australia (Total)      8,853.3  +0.6            4.33*   3.47**

     *  +0.9 percent from prior year period
     ** -1.0 percent from prior year period

NEW ZEALAND:

The emerging New Zealand milk production season is starting off strong. Much of the calvingis wrapping up on the North Island, and the South Island is only a few weeks behind. Preliminary milk volumes are on target. Pasture growth rates are at normal levels, aided byplentiful rains through the winter months. Weather forecasts predict a drier and warmerspring. Dairy farmers expect this will aid in good pasture growth, assuming that adequatesoil moisture can be maintained.

Parts of New Zealand remain under a level 4 lockdown due to Delta variant COVID-19 cases. The Auckland and Northland regions of the country will remain under the heaviestrestrictions as the rest of the country moves to level 3 protocols. As essential workers,dairy farmers and food processing workers may travel between the regions with properdocumentation but are required to maintain social distancing and other safety measures.

Industry contacts do not expect much disruption to processing or farming operations, but thetravel restrictions have made finding skilled workers more difficult, especially if thoseworkers came from international workforces.

July 2021 New Zealand milk solids reported by DCANZ and NZX are 26.600 million kg, comparedto 24.795 million kg in July 2020. DCANZ calculates the year-to-date milk production throughJuly 2021 is 9.279 million MT, compared to 8.787 million MT January through July 2020.

January – July 2021 bulk and packaged milk exports from New Zealand 153,000 MT, increased19.3 percent from January – July 2020, according to CLAL data made available to USDA. Themain export destinations January – July 2021, quantities, and percent change from January –July 2020, were China, 115,777 MT, +33.26 percent; Philippines, 8,507 MT, -31.94 percent;and Taiwan, 8,443 MT, +16.34 percent.

 Information for the period August 23 -  September 3, 2021, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@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
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov