USDA: Oceania Dairy Market Overview in the beginning of February 2021

Report 5 – Released on February 4, 2021

AUSTRALIA:

Milk production keeps moving lower seasonally. Concerns with hot and dry conditionspersists. Worrisome weather extremes forecast for next week have many dairy producers onalert. Recent fires caused by extreme heat and dryness have been concerns. But expectedextremely heavy rain and possible cyclones in some areas will pose other concerns. This mayreduce fire danger. Yet extremely heavy and prolonged rain interspersed with gale forcewinds pose other problems. The next week is apprehensively awaited.

NEW ZEALAND:

December 2020 New Zealand milksolids reported by DCANZ and CLAL, 231.027 million kg, are up1.02 percent from December 2019 milksolids, 228.700 million kg., according to Dcanz and CLALdata made available to USDA. December 2020 milk production, 2.741 million MT, is up 0.70percent from December 2019, 2.722 million MT. Seasonal milksolids (June – December 2020)are up 1.02 percent. Total seasonal milk production through December leads last season by0.7 percent. Annual 2020 milk production, 21.871 million MT increased 0.4 percent fromannual 2019 milk production.

Increasingly dry conditions are impacting dairy pastures on the North Island. However, dryconditions last year led to many dairy producers having accumulated added feed stocks as abuffer. That will help mitigate impacts for awhile. But water supplies are tighter and morefire warnings have been issued. Rain would be very welcome.