MD_DA120 Oceania Dairy Market Overview Report 17 - Released on April 29, 2021 AUSTRALIA: July 2020 - March 2021 seasonal milk production in Australia, increased 0.7 percent from July 2019 – March 2020, according to Dairy Australia. March 2021 milk production, 628.4 million liters, decreased 1.8 percent from March 2020. More detailed production data are in the table which follows. AUSTRALIA MILK PRODUCTION, MILKFAT and PROTEIN July 2020 – March 2021 Million Percent Change Percentage State Liters From 1 Year Ago Milkfat Protein New South Wales 824.4 +2.0 4.14 3.35 Victoria 4,446.4 +0.4 4.55 3.52 Queensland 237.3 -3.4 4.16 3.43 South Australia 383.6 +2.5 4.02 3.37 Western Australia 273.5 -0.9 4.08 3.20 Tasmania 772.3 +1.7 4.72 3.71 Australia (Total) 6,937.5 +0.7 4.44* 3.49** * -0.1 percent from prior year period ** -0.8 percent from prior year period Australian dairy producers continue to struggle with labor shortages. The recent opening of the so-called trans-Tasman travel bubble allows quarantine free flights between Australia and New Zealand. In response, a new online advertising campaign seeks to recruit workers from New Zealand to go to Australia to work on farming operations. Free airfare and good wages are promised. The reaction in New Zealand is said to be enhanced efforts to retain experienced agricultural workers. Australian dairy producers and manufacturers continue to express apprehension over the downward cycle of trade relations between China and Australia. Recent action by the government in Australia cancelling Victoria’s Belt and Road deal with Beijing has been viewed in Beijing as provocative. The deal was intended to promote trade activity by infrastructure improvements. Some Australian dairy officials are concerned that Beijing may retaliate in ways that make exporting Australian dairy products to China more difficult. NEW ZEALAND: March 2021 New Zealand milksolids reported by NZX are up 8.7 percent from March 2020 milksolids. March 2021 milk production on a tonnage basis is up 9.8 percent from March 2020. Season to date through March 2021 milk solids increased 1.8 percent from last season through March 2021. Seasonal milk tonnage is up 1.6 percent through March 2021. New Zealand dairy officials certainly welcome the March milksolids increase. Nevertheless, some caution as to excessive exuberance regarding the monthly increase compared with one year ago. March milk production in New Zealand is quite diminished from the peak month, October. The typical low month for production, June, is not far off. The key point is that so late in the milk season a monthly YOY increase is not likely to significantly change the annual results very much. New Zealand commodity exchange sources attribute the March 2021 milk production increase to favorable pasture conditions during February into March. The increase was skewed toward the North Island. Another factor making March 2021 look good is that during March 2020 the North Island was suffering from drought, which suppressed milk production. Some Waikato dairy producers on the upper North Island are said to have reported twice as much milk production during this season through March 2021 as last season through March. Some Taranaki dairy producers on the west side of the North Island also report quite positive increases. Waikato and Taranaki are the two primary milk producing areas on the North Island. Recent rain on both the North island and South Island has helped maintain pasture conditions. Heavy rain is forecast for all areas in the coming week. That will help the South Island, in particular, even up with the North Island as to soil moisture. Dairy trading in New Zealand is off to a delayed start this week. Anzac Day is officially celebrated Monday. This is the day of remembrance of losses sustained by New Zealand in various wars. For some people the three-day holiday weekend is stretched further into last week Friday. A large dairy cooperative in New Zealand has invested in a foodservice application center in southern China. This initiative reflects efforts to develop innovative dairy products to supply coffee shops, restaurants, and food stores. Sales of value added dairy based products into China have been very profitable. Information for the period April 19 - 30, 2021, 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