Oceania Dairy Market Overview

MADISON - Feb 17/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The milk production season in Oceania continues to decline.
In New Zealand, producers are hopeful that they will be able to recover some
of the first half of the season losses as the season winds down.  Recent
figures indicate that milk volumes in New Zealand were down 5% during the
first half of the year.  At this point, some milk handlers and producers feel
that they will be able to recover some of the losses, but are not overly
optimistic that they will be able to fully recover.  In Australia, milk
production figures for the first half of the season (July - December) indicate
that cumulative production is down 0.9% when compared to the comparable months
in 2003.  This cumulative difference continues to narrow.  December monthly
production realized a 0.5% increase over last December.  This was the first
positive month for production since September.  In Victoria, the major dairy
producing region of the country, December output was up 2.3% when compared to
last December and is 0.8% ahead of last season for the first six months.  No
significant changes are being reported in the supply and price situation in
Oceania.  Traders and handlers continue to report that supplies are in very
close balance with demand and often lighter than most desire.  At this point,
stocks are fully committed to regular and ongoing customers' needs with
minimal, if any, available for spot or new buyer interest.  Most handlers and
traders are hopeful that they will have sufficient stocks to fully acknowledge
their commitments as the milk production season winds down.

0930c steve schneeberger  (608)224-5084

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STAT News Service