USDA: Oceania Dairy Market Overview at the beginning of September 2020

Report 37 – Released on September 10, 2020

AUSTRALIA:

July 2019 – June 2020 milk production in Australia decreased 0.2 percent from the corresponding previous period, according to Dairy Australia. June 2020 milk production,623.5 million liters, was 4.1 percent higher than June 2019. More detailed production data are in the table which follows.

   AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July 2019 - June 2020

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

     New South Wales        1,043.6  -3.6            4.10    3.43
     Victoria               5,618.7  +0.8            4.31    3.52
     Queensland               311.0 -12.9            4.18    3.40
     South Australia          487.9  -1.7            4.13    3.41
     Western Australia        364.3  -2.7            4.00    3.32
     Tasmania                 950.0  +4.4            4.88    3.76
     Australia (Total)      8,775.5  -0.2            4.29*   3.51**

     *  +1.5 percent from prior year period
     ** +2.0 percent from prior year period
NEW ZEALAND:

New Zealand is nearing the peak of seasonal milk production. This has also resulted in heavy production schedules at most dairy manufacturing plants. Early calving is expected to be beneficial to milk production. With a majority of New Zealand dairy production and products exported, New Zealand is quite focused on global conditions. A continuing concern is whether economic growth will slow, which would likely slow export demand. So far the New Zealand view is that dairy demand is growing.

Following the advent of COVID-19, New Zealand required some skilled foreign farm workers to return to their countries of citizenship. This week that was eased, so some visa holding farm workers with past ties to New Zealand will be allowed to return.Last week a major dairy cooperative has reaffirmed the current milk pay price forecast.

Ultimately this will depend on dairy product pricing holding, especially whole milk powder.

Source