Report 49 – Released on December 9, 2021

AUSTRALIA:

Australian milk production through October, the fourth month of the season, continues to bedisappointingly low. October is the usual high point of seasonal milk production. Whilethere are more seasonal months to follow than have occurred so far, production will betrending lower, so making up for the past will be a challenge in the future.

Summer is about to begin. That brings normal uncertainties as to heat, rainfall, and themore recent uncertainty, wildfires. Next month, January, is typically the hottest month ofthe season. There is optimism about the recent trend of increasing volumes of milkseasonally being produced in South Australia. Milk per cow has recently trended higher thereas well.

NEW ZEALAND:

New Zealand dairy observers characterize milk production reporting through October, thefifth month of the production season, as disappointing. While hopes are for a recovery, thetypical trend of lower production month after month through the rest of the season willrequire a decent rebound to overcome the deficit so far. Early observations of the Novemberresults are said to suggest that when official results are released, November will offerlittle help. One positive noted by dairy producers of the lower milk production is thatvarious dairy processors in New Zealand have been nudging farmgate milk pay prices higher. But the processors have sales commitments to maintain and lower milk production complicatesmaintaining good contractual relationships.

Information for the period November 29 – December 10, 2021, issued biweekly

Secondary Sourced Information:

Seasonal milk production in Australia on a liters basis July-October 2021 decreased 2.1percent from July-October 2020 and decreased 2.9 percent from June-October 2019 accordingto DCANZ and CLAL. October 2021 liters registered 2.91 percent below October 2020. Milkproduction in Australia on a liters basis January-October 2021 decreased 2.1 percent fromJanuary-October 2020 and decreased 2.9 percent from January-October 2019 according to DairyAustralia and CLAL.

Australian exports of bulk and packaged milk January-October 2021 increased 26.5 percentfrom January-October 2020 according to CLAL data made available to USDA. The greatestincrease during the period was bulk and packaged milk exports to China, which increased73.3 percent, and are greater than total exports to the next nine export destinationscombined.Seasonal milk production in New Zealand on a tonnage basis June-October 2021 decreased 3.3percent from June-October 2020 and decreased 2.5 percent from June-October 2019 accordingto DCANZ and CLAL. October 2021 tonnage was 3.44 percent below October 2020.

Seasonal milkproduction in New Zealand on a kg basis June-October 2021 decreased 3.1 percent from June-October 2020 and decreased 2.8 percent from June-October 2019. October 2021 kg registered3.07 below October 2020.New Zealand exports of bulk and packaged milk January-October 2021 increased 10.4 percentfrom January-October 2020 according to CLAL data made available to USDA. The largest exportcustomer for bulk and packaged milk is China, increasing 17.6 percent.

Published by:

Dairy Market News – Madison, WI

Eric Graf, 608.422.8590

Email: Eric.Graf@usda.gov

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