Report 13 – Released on March 28, 2019

AUSTRALIA:

The trend of dairy herd reductions continues among many Australian dairy producers. Recent drought conditions contributed to herd reductions. It is generally not expected that herds will increase during the final months of this season, probably not next season either. Australiaśs growing population, and good demand for milk and dairy products, is expected to result in lower dairy exports over the next year. Making cheese for export is increasingly identified as a favored export dairy emphasis. Cheese is viewed within Australia as a dairy product where Australia has a competitive advantage in its traditional export markets.

The shifting season in Australia has brought cooler weather with rain in some areas. More rain will be welcomed, but rain this week is a nice change from recent months. The new trend is favorable but is so far not enough to overcome the effects of months of dryness and high heat. Some new season hay is appearing in markets. This is good news as carryover stocks have been lower than desired. Stocks are still low enough that government subsidies for transporting hay, feed and livestock remain in effect.

NEW ZEALAND:

February 2019 New Zealand milk production reported by DCANZ was 1.875 million MT, up 0.1 percent from February 2018 milk production, 1.874 million MT. February 2019 milk solids, 165.025 million kg, are down 0.1 percent from February 2018, 165.225 million kg.

Cyclone Trevor has left devastation and flooding throughout the South Island and many parts of the West Coast of New Zealand. Characterized as a 100 year event, extremely heavy rain has washed out roads and bridges, also leaving some roads impassable. Milk hauling is disrupted in some areas. On farm damage has yet to be tallied. Forecasters are already warning about another cyclone developing next week, expected to further impact northern parts of New Zealand. Another challenge to West Coast dairy producers is the possible distress sale of a major cooperative dairy processor which has been financially struggling. Directors are soliciting views from cooperative members as to offers from various prospective buyers. Farm milk pay price, assumption of coop debt, and assurance of continued milk pick up even in more remote areas, are matters of primary concern to coop members.

Information for the period March 18 – 29, 2019, issued biweekly

Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

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