Report 3 – Released on January 21, 2021

AUSTRALIA:

Australia struggled during 2020 to maintain export volumes of dairy powders, butter, andcheese. Internal Australian demand was one factor. But simmering political tensions withChina, a significant export customer, are believed to have led to China looking for moresourcing elsewhere during the latter part of 2020. Current dry conditions have strainedpasture growth. Uncertainty about weather impacts in coming weeks remains a concern. Therewill be some unease among dairy producers due to the uncertainty.

NEW ZEALAND:

New Zealand milk production is moving lower seasonally. However, adverse weather concernshave abated. South Island sources describe soil moisture as better than normal. Pasturegrowth on both the North and South Islands is very healthy. Recent rains and expected rainin the coming week, give further confidence that pastures will remain healthy for grazingfor some time. This bodes well for milk production. Yes, there will continue to be seasonaldeclines. But the decline will be moderated by decent weather.

 Information for the period January 11 - 22, 2021, 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