MD_DA120 Oceania Dairy Market Overview Report 5 - Released on February 2, 2023 NEW ZEALAND With the release of New Zealand's December milk production report, milk collections were slightly lower than the previous year. Season to date production is 2.1% below the same period last year at the end of December 2022. Overall, there were 353 farm sales in the three months ended December 2022. Meanwhile the milk price forecast has eased 33 cents/kgMS from the previous forecast, as a large New Zealand dairy cooperative is expected to lower its milk price. The underlying basis cited for the revision is unfavorable pasture quality effect on projected milk production. Australia Australia continues to battle quite a bit of moisture as persistent rainfall proves challenging in some regions of the country, supporting the narrative to expect a drop in seasonal milk output, which tracks to fall below initial production forecasts. Meanwhile, Australia exports continue to encounter sluggish dairy demand in key market as buyers taper purchases to smaller volumes and their immediate needs, well aware of softening prices. On the domestic side, dairy consumers are paying more, but buying less as retail sales have declined for butter and cheese, but sales are rising for bottled milk. Information for the period January 23 - February 3, 2023, issued biweekly Secondary Sourced Information: NEW ZEALAND MILK PRODUCTION Milk production in December 2022 was 2,588 million MT, compared to 2,603 million MT in December 2021, while year-to-date output is 21,051 million MT. New Zealand milk solids reported by DCANZ was 219,566,000 kg in December 2022, compared to 218,357,000 kg in December 2021. AUSTRALIA MILK PRODUCTION According to Dairy Australia, November 2022 seasonal milk production in Australia, 819,855 million liters, decreased 9.7 percent from November 2021. More detailed production data are in the table which follows. AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN November 2022 Million Percent Change Percentages State Liters 1 Year Ago Milkfat-Protein New South Wales 86.4 - 13.1 4.07 3.32 Victoria 527.2 - 10.1 4.13 3.36 Queensland 25.5 - 7.9 4.00 3.29 South Australia 45.5 - 8.4 3.90 3.31 Western Australia 30.1 - 1.7 3.99 3.35 Tasmania 105.0 - 7.5 4.16 3.43 Australia (Total) 819.9 - 9.7 4.10 3.36 Published by: Dairy Market News - Madison, WI DANIEL JOHNSON, 608-422-8605 Email: daniel.johnson4@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