Oceania Dairy Market Overview

MADISON - Feb 3/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production trends in Oceania continue to decline
seasonally.  A recent report indicated that milk volumes were down as much as
5% in New Zealand for the first half of the season.  Cooler temperatures and
poor weather conditions are being attributed to the decline in milk
production.  In Australia, milk production for the period July through
November was down 1.2% on a cumulative basis.  Some milk handlers and
producers were surprised at this decline, with many of them feeling that the
decline would not have been this much.  A significant portion of this decline
occurred in November when milk volumes were down 3.5% when compared to last
November.  Australian's anticipate that December reports will be more positive
and cumulative production will be in closer balance with last season.  As milk
production reports indicate lighter volumes, milk handlers continue to report
that dairy product production is also down on last season, but traders and
handlers are optimistic about fulfilling their commitments.  Stocks of product
are in very close balance and often short of full needs.  Handlers and traders
state that with their supply/management agreements with other sources
throughout the world, they should be able to fully acknowledge their
commitments.  Some traders and handlers are already looking to the new
production season which will resume in August/September with more optimism.
For some, the past few years have not been as positive as they would have
desired, although they remain optimistic about the dairy industry in Oceania.

0930c steve schneeberger  (608)224-5084

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STAT News Service