Report 25 – Released on June 24, 2021

AUSTRALIA:

July 2020 – April 2021 seasonal milk production in Australia, increased 0.6 percent from July 2019 – April 2020, according to Dairy Australia. April 2021 milk production, 623.8 million liters, was even with April 2020. More detailed production data are in the table which follows.

     AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July 2020 – April 2021

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

     New South Wales          905.1  +2.1            4.24    3.41
     Victoria               4,820.6  +0.3            4.56    3.51
     Queensland               260.7  -2.7            4.16    3.43
     South Australia          424.2  +2.5            4.15    3.39
     Western Australia        301.8  -0.9            4.17    3.24
     Tasmania                 849.0  +1.3            4.86    3.78
     Australia (Total)      7,561.3  +0.6            4.50*   3.51**

     *  -0.5 percent from prior year period
     ** -0.9 percent from prior year period

Milk production is at seasonally low levels. The new season will begin on July 1. Production will begin climbing during July but it will be in the fall before the peak is expected to be reached. Dairy producers in South Australia are pleased with strong opening prices being quoted by several dairy processors. Competition to secure milk supplies has led to what some people call a bidding war. Some dairy processors have already revised milk process higher only days after initially announcing prices.

The prime ministers of Australia and the United Kingdom reached an agreement in principle last week affecting dairy trade. Upon ratification, tariffs on Australian dairy exports to the UK will be eliminated over five years.

NEW ZEALAND:

The dairy sector in New Zealand is quiet as it rolls through the first month of the new season. At this time of year most dairy producers have dried off most cows. Milk production will trail along the bottom of the production trough until increases begin to register in July. Even as production resumes the seasonal climb, it will not be until about October that the peak is reached.

Following the announcement of an agreement in principle between Australia and the United Kingdom to phase out tariffs on dairy exports to the UK, many dairy firms in New Zealand are pressuring officials there to secure a similar deal. Sources indicate that there seems to be general agreement in New Zealand to pursue this course of action. Now the action plan is to formally engage with UK officials to commence talks. However, a New Zealand trade official has cautioned that details still must be evaluated and discussed. Dairy officials anticipate there is not likely to be an identical deal as was reached with Australia.

Information for the period June 14 - 25, 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

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