Report 25 – Released on June 20, 2019

AUSTRALIA:

Australia is about one half through what is typically the lowest milk producing month of the year, June. To illustrate this, during the 2017/2018 season, 7.5 percent of Australiaśs seasonal milk was produced during June.

With cooler weather, pasture growth is less a factor balanced against expectations. Many dairy producers are feeling worn down by the season nearing an end. It has been unusually dry in many areas. Grain and hay prices have been high during much of the season. Water for irrigation has been limited and more expensive. A number of producers have reduced herd size to better cope. All of these factors have kept milk production lower than desirable and cut into profitability for dairy producers. As dairy producers plan for the new season, there remains a degree of uncertainty as to how producers will end up as to herd sizes and commitments for feed and grain. Many producers are still sorting their thoughts about the last season and expectations for the future.

NEW ZEALAND:

June is typically New Zealandśs lowest milk producing month of the year. A context for what this means is that during the calendar year 2018, slightly under 1 percent of New Zealandśs annual milk on a milk solids basis was produced during June. This is a very quiet time of the year. Many dairy processing plants are at low or no production volumes for maintenance and/or efficiencies. Dairy producers are beginning to deal with winter conditions. That often means cold weather, rain and mud. Most cow feeding is from stocks purchased or stored. This leads to dealing with cash expenditures with low milk check revenue. Cow comfort is often referenced during hot conditions, but New Zealand dairy producers also address this during cold wet winters. Efforts to ensure cow comfort are a high priority on many farms. Moving fencing and moving cows to dry areas is almost continuous.

 Information for the period June 10 - 21, 2019, issued biweekly

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

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
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