Report 47 – Released on November 23, 2021

AUSTRALIA:

Australian dairy production has not met expectations for the season. There is increasingconcern that current factors will impact longer term results in coming seasons. Farm laborshortages remain a current limiting factor frequently cited. This is said to result fromvarious COVID restrictions. Of concern to some observers is that these current challengeswill deter needed investments by producers to yield longer term increases in dairyproduction. Dairy processors in Australia are very confident in their ability to expanddairy exports. Thus, efforts are increasing to encourage dairy producers to begin to investtoward the goal of increasing production in coming years. Investments would be in suchthings as pasture expansion, paddock upgrades and expansions, milking capacity, etc.

A large Australian dairy exporter attributes shortages of shipping containers to loweringexport potential. This is cited as a factor in lowering profitability.

NEW ZEALAND:

The current milk producing season in New Zealand has been disappointing to producers.Pastures in both islands have yielded sub optimal growth. On the North Island excessive rainhas overwhelmed the ability of many pastures to absorb water in a productive way. Growth hassuffered as a result. The South Island has suffered from erratic rain, resulting in periodsof too dry weather. This also slowed pasture growth. While weather conditions currently aredecent, from this point later in the season it will be difficult to recover lost potentialfrom earlier in the season.