MD_DA120 Oceania Dairy Market Overview Report 27 - Released on July 8, 2021 AUSTRALIA: July 1 marked the opening of the new milk season in Australia. Obviously, seasonal milk production will only increase from here. For past seasons a graph of production shows a nearly vertical line rising to the peak in October. There will be abundant milk flowing into plants rather quickly. Australian milk producers tend to contract seasonally for their milk output. During the last few weeks leading into the new season something of a bidding war broke out. Major processors began lifting offering prices to be sure they have enough milk geographically located for dairy manufacturing plants they operate. A large dairy cooperative increased the offering price twice after the initial price was announced. The coop’s average national price as reported by NZX is 6.96 Australian dollars/kg milk solids. As a country with huge land area and climatic variety, prices offered in varied regions do differ from other regions. Among the highest prices noted, a processor in northern Victoria and southern New South Wales reportedly offered 7.50 Australian dollars/kg milk solids. NEW ZEALAND: New Zealand sources believe that supplemental feeding helped to boost New Zealand milk production in the season just ended. A current concern for the new season is the likelihood that migrant dairy workers will not be able to come into New Zealand to work for a number of months due to COVID-19 related travel restrictions. The worry is that dairy owners facing labor shortages might adjust for lower milk production. Sources with NZX indicate that some banking analysts continue to believe that new season milk prices in New Zealand will end up in the 8.00 New Zealand dollar/KG milk solids – 8.20 range. The lower results from the GDT event earlier this week did not cause the seasonal forecasts to be altered. May 2021 New Zealand milksolids reported by DCANZ, and NZX, 99,675 million kg, are up 9.4 percent from May 2020 milksolids. Season to date milk solids through May 2021 increased 2.7 percent from last season through May 2020. Information for the period June 28 - July 9, 2021, issued biweekly Secondary Sourced Information: May 2021 New Zealand tonnage reported by DCANZ, 974,000 MT, and NZX are up 7.6 percent from May 2020 tonnage. Season to date milk tonnage through May 2021 increased 2.6 percent from last season through May 2020. January – May 2021 bulk and packaged milk exports from New Zealand 116,000 MT, increased 30.1 percent from January – May 2020, according to CLAL data made available to USDA. The main export destinations January - May 2021, quantities, and percent change from January – May 2020, were China, 91,408 MT, +55.43 percent; Taiwan, 6,024 MT, -8.22 percent; and Philippines, 5,656 MT, -34.49 percent. 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