May 28, 2005

Drop in New Zealand and Australia milk production

The milk production season in Oceania is still on a downward spiral. The milk production year in New Zealand will conclude at the end of May, with preliminary annual output estimates trailing last year by 3 to 4 percent.
 

In Australia, milk volumes are also declining as their milk production season has one more month to go before the official end of the year. Most recent production figures (9 months) indicate that output is still trailing last year by 0.3 percent, although reports for some regions, especially Victoria, indicate that late season strength is helping narrow the negative gap.
 

Lack of moisture in Australia continues to be a concern for many producers.  Due to this, some farmers and processors are already preparing for another tough year. Manufacturing schedules in both New Zealand and Australia have also been sharply lower.