Report 27 – Released on July 1, 2020

AUSTRALIA:

July 2019 – May 2020 milk production in Australia decreased 0.6 percent from the corresponding previous period, according to Dairy Australia. May 2020 milk production,650.4 million liters, was 6.0 percent higher than May 2019. More detailed production data are in the table which follows.

 AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July 2019 - May 2020

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

     New South Wales          956.6  -4.4            4.18    3.43
     Victoria               5,209.3  +0.4            4.51    3.55
     Queensland               286.6 -13.3            4.24    3.43
     South Australia          450.0  -2.6            4.23    3.42
     Western Australia        334.3  -3.4            4.17    3.34
     Tasmania                 906.8  +4.6            4.93    3.83
     Australia (Total)      8,143.6  -0.6            4.47*   3.54**

     *  +0.9 percent from prior year period
     ** +2.4 percent from prior year period

     Data from Dairy Australia

Recent rainfall has left pastures in good shape for the new season, except Western Australia. The season begins July 1. This has led to moderation of hay prices in many areas.Dairy producers welcome this initiation of the new dairy season.

NEW ZEALAND:

May 2020 New Zealand milk solids reported by DCANZ, 91.1 million kg, are up 3.8 percent from May 2019 milk solids, 87.8 million kg. May 2020 milk production, 905 million MT, is up 4.3 percent from May 2019, 868 million MT.

A large dairy cooperative in New Zealand is developing details of a plan to pay a premium to dairy producers who deliver sustainable high-quality milk. Quality standards are still being developed but are intended to reflect water protection, riparian planting and milk quality.

The concept is to pay up to 10 New Zealand cents per kg of milk solids. This is said to increasingly focus an individual dairy producer’s milk pay price determination on value added to the milk pool, which already recognizes fat and protein. The cooperative said the new initiative was motivated by consumer demand for sustainability. No additional details are yet available. The payment will be funded from the total farm gate pay price, not by an increase in the announced pay price.

There are no GDT results this week. We are in a period with three weeks between events.

 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
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