MD_DA120 Oceania Dairy Market Overview Report 27 - Released on July 1, 2020 AUSTRALIA: July 2019 – May 2020 milk production in Australia decreased 0.6 percent from the corresponding previous period, according to Dairy Australia. May 2020 milk production, 650.4 million liters, was 6.0 percent higher than May 2019. More detailed production data are in the table which follows. AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN July 2019 - May 2020 Million Percent Change Percentage State Liters From 1 Year Ago Milkfat Protein New South Wales 956.6 -4.4 4.18 3.43 Victoria 5,209.3 +0.4 4.51 3.55 Queensland 286.6 -13.3 4.24 3.43 South Australia 450.0 -2.6 4.23 3.42 Western Australia 334.3 -3.4 4.17 3.34 Tasmania 906.8 +4.6 4.93 3.83 Australia (Total) 8,143.6 -0.6 4.47* 3.54** * +0.9 percent from prior year period ** +2.4 percent from prior year period Data from Dairy Australia Recent rainfall has left pastures in good shape for the new season, except Western Australia. The season begins July 1. This has led to moderation of hay prices in many areas. Dairy producers welcome this initiation of the new dairy season. NEW ZEALAND: May 2020 New Zealand milksolids reported by DCANZ, 91.1 million kg, are up 3.8 percent from May 2019 milksolids, 87.8 million kg. May 2020 milk production, 905 million MT, is up 4.3 percent from May 2019, 868 million MT. A large dairy cooperative in New Zealand is developing details of a plan to pay a premium to dairy producers who deliver sustainable high-quality milk. Quality standards are still being developed but are intended to reflect water protection, riparian planting and milk quality. The concept is to pay up to 10 New Zealand cents per kg of milk solids. This is said to increasingly focus an individual dairy producer’s milk pay price determination on value added to the milk pool, which already recognizes fat and protein. The cooperative said the new initiative was motivated by consumer demand for sustainability. No additional details are yet available. The payment will be funded from the total farmgate pay price, not by an increase in the announced pay price. There are no GDT results this week. We are in a period with three weeks between events. Information for the period June 22 - July 3, 2020, 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