Report 23 – Released on June 4, 2020

AUSTRALIA:

July 2019 – April 2020 milk production in Australia decreased 1.2 percent from the corresponding previous period, according to Dairy Australia. April 2020 milk production,618.5 million liters, was 6.4 percent higher than April 2019. More detailed production data are in the table which follows.

AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July 2019 - April 2020

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

     New South Wales          874.0  -4.9            4.16    3.37
     Victoria               4,801.2  -0.3            4.64    3.56
     Queensland               263.9 -13.1            4.14    3.38
     South Australia          411.1  -3.2            4.14    3.40
     Western Australia        304.6  -3.8            4.06    3.25
     Tasmania                 838.0  +4.8            4.81    3.79
     Australia (Total)      7,492.8  -1.2            4.52*   3.54**

     *  +0.8 percent from prior year period
     ** +1.8 percent from prior year period

     Data from Dairy Australia

Australia is near the end of the milk production season. At this time of year few dairy manufacturing plants remain in production. Milk is needed for domestic fluid milk bottling.Milk going into manufacturing often travels further now because plants still manufacturing may not be closest to dairy producers. Many plants are closed and undergoing routine maintenance.

NEW ZEALAND:

April 2020 New Zealand milk production reported by DCANZ was 1,356 million MT, down 0.6 percent from April 2019 milk production, 1,364 million MT. April 2020 milk solids, 135,699 million kg, are down 0.8 percent from April 2019, 136,728 million kg.

June is typically the lowest milk production month of the season. Many cows are now in winter pastures. Most have been dried off. For dairy product sales this is a carry over period, meaning that sales are made from stocks on hand. Low milk production equates to low dairy product production. Experienced buyers are aware of this, leading to little urgency in deals for near term delivery.

July milk production is typically slightly higher than June. August is when dairy producers expect a significant increase in milk production to register. That is when the new dairy product production season will energetically engage. That being the case, the next two months will be quiet in the New Zealand dairy sector.

     Information for the period May 25 -  June 5, 2020, 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
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov