MD_DA120 Oceania Dairy Market Overview Report 1 - Released on January 6, 2022 AUSTRALIA: A wet spring in Australia has helped with feed growth. More recent heavy rain has complicated harvesting feed. Higher costs for fertilizer cause some concern for profitability. Farm labor shortages persist. Cow milk yields are noted to be adversely affected by wet and cold weather. As the current milk season moves forward, seasonal production is considered less likely to increase over last season. NEW ZEALAND: One of the larger New Zealand dairy processors has increased the milk pay price to what is categorized as a record level for that processor. Strong demand for milk is what is said to have resulted in the increased price. The current demand is also reflected in farm sale prices. The median price per hectare for New Zealand dairy farm sales has been reported to be rising. Information for the period December 27, 2021 - January 7, 2022, issued biweekly Secondary Sourced Information: Seasonal milk production in Australia on a liters basis July-November 2021 decreased 0.8 percent from July-November 2020 and decreased 0.9 percent from July-November 2019 according to DCANZ and CLAL. November 2021 liters registered 2.45 percent below November 2020. Annual milk production in Australia on a liters basis January-November 2021 decreased 0.8 percent from January-November 2020 and decreased 0.9 percent from January-November 2019 according to Dairy Australia and CLAL. Australian exports of bulk and packaged milk January-October 2021 increased 26.5 percent from January-October 2020 according to CLAL data made available to USDA. The greatest increase during the period was bulk and packaged milk exports to China, which increased 73.3 percent, and are greater than total exports to the next nine export destinations combined. Seasonal milk production in New Zealand on a tonnage basis June-November 2021 decreased 1.5 percent from June-November 2020 and decreased 4.0 percent from June-November 2019 according to DCANZ and CLAL. November 2021 tonnage was 2.92 percent below November 2020. Seasonal milk solids production in New Zealand on a kg basis June-November 2021 decreased 1.2 percent from June-November 2020 and decreased 3.9 percent from June-November 2019. New Zealand exports of bulk and packaged milk January-November 2021 increased 13.5 percent from January-November 2020 according to CLAL data made available to USDA. The largest export customer for bulk and packaged milk is China, increasing 21.91 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