Report 39 – Released on September 24, 2020

AUSTRALIA:

July 2020 milk production in Australia, the first month of the new season, increased 2.9 percent from July 2019, according to Dairy Australia. More detailed production data are in the table which follows.

AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July 2020

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

     New South Wales           88.1  +2.0            4.00    3.39
     Victoria                 417.1  +3.8            4.14    3.46
     Queensland                26.3   7.4            4.08    3.38
     South Australia           34.8  +4.3            3.87    3.35
     Western Australia         30.3  +3.8            3.82    3.32
     Tasmania                  23.8  +0.8            4.48    3.50
     Australia (Total)        620.4  +2.9            4.10*   3.40**

     *  +2.3 percent from prior year period
     ** +1.0 percent from prior year period

Many dairy producing areas have experienced rain throughout much of September. While helpful, some areas feel there has been too much of a good thing. There have been reports of barn collapses attributed to the weight of wet hay put into storage.

NEW ZEALAND:

August 2020 New Zealand milk solids reported by DCANZ, 124.6 million kg, over five times more than July 2020, are up 4.6 percent from August 2019 milk solids, 119.1 million kg. August 2020 milk production, 1.47 million MT, over five times more than July 2020, is up 5.8 percent from August 2019, 1.19 million MT.Spring weather has been very favorable to milk production. Current projections are for a year with higher production than last year. There has been good rainfall in recent weeks leaving many pastures in healthy condition.China continues to be a significant dairy export customer for New Zealand. January – July 2020 China bought more butter, WMP and SMP than any other nation. It was narrowly the second largest customer for cheese, behind Japan. Current expectations are for continuing strong export demand from China through this milk season.A large New Zealand dairy cooperative closed the books on the 2019 – 2020 year last week,announcing finances are back in the black. Returning to profitability following some poor years helped to maintain the projected seasonal milk pay price. Unlike last year, dividends will now be paid to shareholders for the fiscal year.

 Information for the period September 14 - 25, 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:
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