MD_DA120 Oceania Dairy Market Overview Report 25 - Released on June 23, 2022 NEW ZEALAND New Zealand pastures are showing signs of recovering, with a turnaround that supports numbers that are in line with year ago pasture growth levels. Hence, some market representatives have an optimistic outlook for the country's milk production as the new dairy season begins. Also being taken into consideration are the number of dairy cow slaughters, which have been limited in New Zealand. As such, the industry suggests the possibility of increased milk production over previous year's volumes. A report showed dairy cow slaughters were down 14.2 percent compared to April 2021. Also, total slaughters for Oct 2021-Apr 2022 were 385,616 head, 14.2 percent less than slaughters during the same period the previous year. Meanwhile, New Zealand's milk processors are expected to utilize the majority of plant capacity towards cream and/or protein production. The export market's appetite for milk protein and milk fats drives the effort, as New Zealand's dairy export revenue tracks a 13 percent growth rate over the previous year. AUSTRALIA Strong demand for dairy products facing weak supply has helped profitability in the Australian dairy industry. However, inflationary pressures and cost impacts are increasingly being noticed as factors reducing profit margins at the farm level. Continuing farm and plant labor shortages are cited by sources as constraining dairy production growth. Some processors are less affected as a large Australian dairy cooperative reports profitability. Meanwhile, adverse weather has severely impacted milk production in Australia. According to Dairy Australia, July 2021 - April 2022 seasonal milk production in Australia, 7.3 million liters, decreased 3.4 percent from July 2020 - April 2022. Information for the period June 13 - 24, 2022, issued biweekly Secondary Sourced Information: AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN July 2021 - April 2022 Million Percent Change Percentage State Liters From 1 Year Ago Milkfat-Protein New South Wales 918.0 + 1.6 4.26 3.42 Victoria 4,635.3 - 3.9 4.55 3.52 Queensland 255.3 - 2.1 4.18 3.41 South Australia 418.9 - 0.7 4.16 3.43 Western Australia 284.0 - 5.9 4.23 3.26 Tasmania 790.3 - 7.1 4.84 3.79 Australia (Total) 7,301.8 - 3.4 4.50 3.52 Published by: Dairy Market News - Madison, WI DANIEL JOHNSON, 608-422-8605 Email: daniel.johnson4@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