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AUSTRALIAN milk production continues to be suppressed by bouts of extreme heat and dry weather. The breaks between the various heat waves have offered some bounce back in production, but the continuing cycle of heat has accelerated production declines. Numerous wild fires have periodically interfered with some milk shipments, due to intense smoke limiting visibility and closing highways. Milk production is hanging on in northern Victoria where irrigation systems are maintaining pastures and also due to supplemental feeding to help extend the production season. Those areas without irrigation have very limited or no pastures for cattle. According to Dairy Australia, December milk production in Australia was 1.4% above December 2012. The state changes from a year earlier are: New South Wales, -1.6%; Victoria, +2.3%; Queensland, -2.4%; South Australia, -3.6%; Western Australia, -3.7% and Tasmania +5.2%. Australia’s milk production season to date is -3.0%, compared to last season. Dairy Australia has also summarized exports for the July-December period, showing total export tonnage down 11.8%. The decline in tonnage was offset by a rise in total value with an increase of 15.8%. Milk powder demand remains good and continues to be the dominate factor in the dairy markets.
NEW ZEALAND milk production continues to be well above year ago levels. Weather conditions have been supportive of milk production, especially on the South Island. The North Island is dry in some areas, which is not unusual for this time of year. Some producers have implemented supplemental forage feeding in order to maximize their late season production. Overall, the production season looks to end strong for most producers. The gains in late season production, over last year, are allowing manufacturers to more confidently manage and build stocks for the upcoming carryover period.
Global demand for milk powders remains strong. China’s trading activity is slowly coming back following the New Year’s holiday. Butteroil and milk powder prices have reached levels, where some prospective buyers are considering alternative products.
Source: Dairy Market News
