MD_DA120 Oceania Dairy Market Overview Report 15 - Released on April 11, 2019 AUSTRALIA: Seasonal milk production in Australia, July 2018 through February 2019, is 6.4 percent lower than last year. February 2019 is 12.6 percent lower than February 2018. This table displays Dairy Australia data July through February. AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN July 2018-February 2019 February 2019 Million Percent Change Percentage State Liters From 1 Year Ago Milkfat Protein New South Wales 702.2 -10.1 3.89 3.18 Victoria 4,031.9 -7.8 4.44 3.36 Queensland 251.1 -10.1 4.01 3.25 South Australia 345.4 +1.5 3.97 3.26 Western Australia 256.0 -2.5 4.03 3.19 Tasmania 652.9 +3.5 4.60 3.47 Australia (Total) 6,239.5 -6.4 4.33* 3.33** * +3.0 percent from prior year period ** -0.2 percent from prior year period Data from Dairy Australia Impacts of lower milk production vary in different areas of Australia. The current season, with more hot weather and dry conditions than had been expected, has also led to some localized plant inefficiencies related to lower milk intakes requiring plant operation at sub-optimal schedules. A large cooperative in Victoria has implemented a plan offering a localized pay price premium to local producers who sell milk to the plant if they maintain specified production volumes and quality requirements. It is hoped this will help the producers to be able to purchase feed to increase and sustain higher output, which will move the plant closer to higher efficiency production volumes. It may not be within the focus of many Northern hemisphere readers, but Australia is already in the first month of autumn. Many dairy producers are focused on preparing for winter. This involves efforts to assure that adequate hay and grain are secured for winter use. Hay stocks are tight in Northern Australia. Demand is still ahead of supply. This necessitates hauling hay from other areas, especially southern Australia. Of course, hauling adds to the cost of hay and crimps profitability for dairy producers. New season hay from southern Australia is being sold. Canola crops and failed wheat have been turned into hay to supplement what is available for sale. The new planting season is informally considered to occur annually on Anzac Day, April 25, a day of rememberance in Australia. As the new planting season approaches, recent rain improving soil moisture has been welcome as far as hopes that the next season will produce more hay and grain and help dairy production. More is needed however, to get soil moisture closer to ideal conditions. NEW ZEALAND: Most of the milk for the current season in New Zealand has been produced. As a guide to what this means, April, May and June, the final months of the New Zealand milk production season, last season generated about 13.8 percent of seasonal milk. Whatever the weather or other impacts through June will not greatly impact this season¶s final result. Recent rain on the North Island has resulted in some dairy producers to keep milking more cows longer than had been planned. The rain was welcome following a dry spell in some areas. It is typically a time when lower producing cows are dried off and milking is reduced to once a day. The rain greened some pastures and the grazing will lead to a strong finish to the milk production season. Information for the period April 1 - 12, 2019, 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 (MyMarketNews): https://mymarketnews.ams.usda.gov/