MD_DA120

     Oceania Dairy Market Overview

     Report 21 - Released on May 25, 2023

     NEW ZEALAND

     Recent data from the 2023 April milk production report marked the month as the largest ever
     April milk production, while recognizing an increase of 7.3 percent on milk solids basis,
     with 154,060,000 kg generated for the month. With the 2023 New Zealand milk production
     season set to end on May 31, some sources expect total milk production to fall 0.5 percent
     compared to the 2022 season, while official totals are planned for release late next month.
     The major co-ops are maintaining a positive outlook for the new production season. As such,
     the New Zealand milk price forecast has increased four cents to 8.62/kgMS. Meanwhile, New
     Zealand's export numbers for April show an increase as well. Total dairy export volumes
     escalated 27 percent, year-over-year. Along these lines, the country's export of WMP
     increased, a first this year, 35 percent year-over-year. Although China imports of New
     Zealand WMP continue to represent a decline, their April purchase volumes were the largest
     month-to-date purchases this year by the country.


     AUSTRALIA

     In Australia, it continues to be a season that lags previous year's milk production levels.
     Factored by smaller herd sizes, hikes in packaging costs, feed and other input costs, all
     drive lower milk output. According to the recent April 2022-23 report,  milk production
     declined 1.7 percent compared to the previous year. Market representatives expect other
     challenges for the 2023-24 milk season, including higher interest rates and availability of
     labor to add to uncertainty. Some estimates foresee Australian milk production diminishing
     as much as 6 percent over the previous year. Meanwhile, sources note the upcoming milk
     production season will likely involve poor pasture conditions in the winter and early
     spring. As such, the upcoming season is expected to have lower milk prices compared to the
     prices being seen currently in some parts of the country.


     Information for the period May 15 - 26, 2023, issued biweekly

     Secondary Sourced Information:

     **UPDATED**

     NEW ZEALAND MILK PRODUCTION

     April 2023 New Zealand milk solids reported by DCANZ was 154,060,000 kg, compared to
     143,603,000 kg in April 2022. Milk production in April 2023 was 1,526,000 MT, compared to
     1,429,000 MT in April 2022.




     Published by:
     Dairy Market News - Madison, WI
     JOHNSON, DANIEL, 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