MD_DA120

     Oceania Dairy Market Overview

     Report 51 - Released on December 19, 2019

     AUSTRALIA:

     There is a general consensus among professionals in the dairy industry that higher milk pay
     prices are being edged by weaker retail and food service dairy demand related to consumer
     price resistance. Another factor is higher input costs, such as feed and water. Ongoing
     drought is pushing irrigation costs higher. The result is continuing disappointing margins
     for some Australian dairy producers. Dairying in southern Australia has been better than
     some other regions, such as northern Australia. High heat records were broken this week in
     Victoria. Melbourne record temperatures were into the 100s Fahrenheit. Current milk supplies
     are being impacted by current extreme weather conditions.

     NEW ZEALAND:

     Heavy rains have led to flood waters in some South Island dairy areas. Impacts included
     rivers cutting into farmland, silt accumulation, damaged paddocks, and power outages. Some
     bridges and roads were also flooded, stopping some milk collection. In areas where rain was
     not excessive, it was a welcome development in terms of keeping good pasture growth. Some
     dairy manufacturing plants continue to maintain extended schedules to accommodate milk
     intakes, even as the seasonal peak has passed.

     Information for the period December 9 - 20, 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