MD_DA120

     Oceania Dairy Market Overview

     Report 5 - Released on January 31, 2019

     AUSTRALIA:

      Weather is not giving any relief to depressed milk production in Australia. Heat continues
     to be a very serious problem starting 2019. Peak temperatures in some inland areas this week
     hit 115 degrees Fahrenheit. Wildfires rage. The dry conditions have led to severe dust
     storms. Power usage is so high that power outages are increasingly common. Public owned
     electric trains have been slowed with reduced schedules to save power. All of this hangs
     over the dairy industry. Feed is getting harder to find, poorer quality, and more expensive.
     Some dairy producers are having great difficulty getting enough water to cows. Cows are
     literally dying. It is a very sad and painful situation. The recovery timetable is
     uncertain.

     Seasonal milk production in Australia through November is 4.8 percent lower than last year.
     The states of South Australia and Tasmania are up, but the other four states, which account
     for the bulk of milk production, are lower. The following table displays Dairy Australia
     data through November.


                AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN

                            July-November 2018         November 2018
                            Million  Percent Change    Milkfat      Protein
     State                  Liters   From 1 Year Ago   Percentage   Percentage
     New South Wales         466.3       -9.5             3.87        3.19
     Victoria              2,732.1       -5.5             4.02        3.34
     Queensland              165.2      -10.0             3.92        3.22
     South Australia         221.3       +3.5             3.74        3.21
     Western Australia       166.5       -1.5             3.86        3.29
     Tasmania                383.9       +4.1             4.14        3.40
     Australia (Total)     4,135.3       -4.8             4.00*       3.32**

     *  +2.0 percent from prior year period
     ** +0.2 percent from prior year period

     Data from Dairy Australia




     NEW ZEALAND:

      New Zealand is approaching a four to six week period when the final outcome of the milk
     production season will be essentially determined. The very good seasonal increases so far
     are not expected to slip much. Barring unexpected weather, the point of reasonable seasonal
     certainty is drawing closer. Parts of each island reached inland highs in the mid 80s
     Fahrenheit. Many coastal areas are slightly cooler. This is tolerable weather for late
     January in New Zealand. There has been light rain over much of the country.

     December 2018 New Zealand milk production reported by DCANZ was 2.7 million MT, up 3.8
     percent from December 2017 milk production, 2.6 million MT. December 2018 milk solids,
     228.2 million kg, are up 6.1 percent from December 2017, 215.1 million kg.

     Full year 2018 New Zealand milk production reported by DCANZ was 21.9 million MT, up 1.9
     percent from full year 2017 milk production, 21.5 million MT. Full year 2018 milk solids,
     1.894 billion kg, are up 2.1 percent from full year 2017, 1.855 billion kg.

     Information for the period January 21 -  February 1, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home