Oceania Dairy Market Overview

MADISON - Jan 20/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Oceania milk production continues to edge lower seasonally.
Weather conditions in both Australia and New Zealand have not been overly
favorable for milk production on the downside of the season.  In New Zealand,
measurable rainfall occurred during the Christmas/New Years holidays, but
within the past week or so, conditions have improved.  Reports continue to
indicate that output in New Zealand is trailing last year at this time.  New
Zealand producers and handlers remain optimistic that the second half of the
season will be positive.  In Australia, hot temperatures have been recorded
within the past few weeks, but these high temperatures have now moderated.
Milk production reports indicate that overall milk volumes are trailing last
year also.  November production totals are soon to be released with producers
and handlers feeling that milk receipts during the month were lower than last
year.  Milk volumes in Oceania have been lower than anticipated this season,
thus stocks of manufactured dairy products are in close balance and sometimes
short of full needs.  Handlers and traders indicate that most stocks have been
fully committed for the balance of the season, with some even looking to next
season to fully meet their current commitments.  At this point, many Oceania
handlers and traders indicate that they will be very pleased if they are able
to fully fill known commitments let alone acknowledge potential spot buyer
interest.

0930c steve schneeberger  (608)224-5084

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STAT News Service