MD_DA120 Oceania Dairy Market Overview Report 41 - Released on October 12, 2023 NOTICE: After October 16, 2023, all information found on this report will transition to a new PDF format. The same data will be collected and disseminated through AMS Marketing Analysis and Reporting Services (MARS) platform. The new pdf report can be accessed on the AMS website at: https://www.ams.usda.gov/mnreports/ams_1037.pdf NEW ZEALAND: In New Zealand, a major milk co-operative has raised the milk price forecast for 2023-2024 to the delight of local dairy farmers, who have previously experienced constant reductions in the milk price. Worth noting, per New Zealand sources, milk collections are likely to decrease this 2023-2024 season compared to last. On the demand side, market representatives attribute the increase in the milk price forecast to a jump in demand, which some suggest is prompted by the El Nino outlook. The recent GDT auction showed stronger demand forecasts were supported, as prices appear to be recovering, but there is still unpredictability in the market. Oceania market representatives point out there are still concerns, including the question of China's willingness to maintain the recent level of interest it has shown. AUSTRALIA: In Australia, as seasonally low milk output continues to challenge the country, sources note that Victoria had a successful milk production year, while producing 63 percent of Australia's milk during 2022-2023. Victoria also led Australia dairy exports, valued at $2.5 billion. Farmers were able to offset the high feed and other input costs due to a noted improvement in the 2022-2023 milk price, yielding a record 17 year high for dairy farmer profits as milk prices grew by 33 percent. Meanwhile, current projections point to stronger milk output than 2022-2023 for the country in general. The industry still faces global market challenges as China's demand still has an impact on dairy products prices and farm input costs are showing signs of rising again, per market representatives. With that said, the Australia dairy industry could face another El Nino, creating drier conditions that may affect local feed supplies. Current projections from industry representatives, apart from the El Nino risk, point to average yields and moderate declines in feed prices. Information for the period October 2 - 13, 2023, issued biweekly 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