June 11, 2005

Dairy production in Australia and New Zealand halted for winter

Milk production in Australia and New Zealand is currently at a seasonal low with the winter season and the cessation of milk production. As conditions in both countries during the past year were not positive for many reasons, milk producers are cautious about the prospects for the new milk year. 

New Zealand did not have a good start last season due to excess moisture, while Australian producers continued to slowly recover from drought in recent years.  As the season in Australia comes to an end, lack of moisture continues to be a concerning factor. 

Milk output will likely be 3 - 4 percent lower in New Zealand and even to 1 percent lower in Australia. Manufacturing facilities in both countries have now ceased operations or are in the final days of shutdown.  Stocks of manufactured dairy products have been limited all year long in the regions.

For the most part, product prices are unchanged, although producers and traders are closely monitoring the impact that recent subsidy cuts in Europe may have on milk powder prices for international markets.