MD_DA120

     Oceania Dairy Market Overview

     Report 47 - Released on November 21, 2019

     AUSTRALIA:

     Uneven hay production has kept active hay movements around Australia, adding to costs for
     dairy producers. Extremely windy, hot and dry weather in Northern Australia has adversely
     impacted hay production. Hay from Southern Australia and Victoria, excluding Southeast
     Australia, is trucked North to help meet demand. It has been too wet to bale hay in
     Southeast Australia.

     Rumors of possible changes to the proposed new Australian Dairy Code, which are believed to
     permit processors to amend contracts should unforeseeable events occur, are leading to vocal
     pushback by dairy producers. Current concerns relate to a draft proposal currently
     circulating in limited distribution. An earlier draft of the proposed rule prohibited such
     after the fact changes. Part of the anxiety of producers is the lack of certainty as to
     whether the amendment to the proposal is real, or rumor. In any event, very active public
     discussion is occurring at dairy meetings around Australia.

     NEW ZEALAND:

     In New Zealand October is the month with peak seasonal milk production. October 2019 New
     Zealand milk production reported by DCANZ was 3,213 million MT, down 2.6 percent from
     October 2018 milk production, 3,299 million MT. October 2019 milk solids, 266,907 million
     kg, are down 1.5 percent from October 2018, 271,080 million kg. This results in current
     season milk production through October being 0.7 percent lower than this point last season,
     according to Eucolait. However, milk production this season through October is up slightly
     on a milk solids basis. The October 2019 monthly results, being slightly below October
     2018, were anticipated by some New Zealand based dairy industry people. There is less
     speculative agreement as to whether the seasonal backside will contribute to generating
     more, or less, milk than last season. In any event, it is more widely expected that seasonal
     production will be within the range of last season. It is many months until official data
     will be available, and the seasonal totals are known.

     Active disagreement continues within New Zealand as to changes to law involving fresh water
     rules. A specific point of disagreement involves irrigating naturally dry areas to support
     more cows. There are advocates for reducing irrigated water availability, thus leading to
     fewer cows. Advocates of restricting irrigation for dairy assert that the magnitude of
     current irrigation is adversely impacting overall water purity and making New Zealand a less
     popular recreational and tourist destination.

     Information for the period November 11 - 22, 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 (My Market News): https://mymarketnews.ams.usda.gov