Oceania Dairy Market Overview

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

OCEANIA OVERVIEW:  No major changes have been occurring in the milk production
season in Oceania during the past few weeks.  Milk producers and handlers
report that seasonal declines continue to occur.  Producers and handlers in
both Australia and New Zealand were hopeful that the last half of the season
would be positive, thus making up some of the loose of the first half.
Although production during the down side of the season has not been negative,
many handlers report that the recovery hoped for is not as strong as desired.
Overall milk volumes are trailing last season.  Reports from New Zealand
indicate that output is trailing last season by about 5% with no significant
recoveries anticipated before the end of the year.  In Australia, cumulative
production is running about 1% behind last season, but output is gradually
narrowing the gap between the two years.  Stocks of manufactured dairy
products are in very close balance to short of full needs.  More manufacturers
and handlers are now stating that they are hopeful that they will have
sufficient stock to meet commitments by the end of the year and feel that they
will not have any available inventory for additional or spot buyer interest at
that time.  Manufacturing schedules throughout the region remain seasonally
active, although some milk handlers, when possible, are diverting milk toward
products of more need or better return.  Some traders and handlers are already
looking to other, outside sources, to secure additional product to fulfill
their commitments.

0930c steve schneeberger  (608)224-5084

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STAT News Service