Oceania Dairy Market Overview

MADISON - Jul 7/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Little new dairy related news is noted from the
Oceania region where winter is underway.  Current milk production is
geared toward just filling the domestic fluid market and not export
products.  Current activity centers around making plans and
commitments for the upcoming production season and shipping previously
made sales from inventory.  Limited uncommitted supplies of some dairy
products are available, keeping sales activity quiet while others may
be overcommitted.  Sales center on the new production season that gets
underway in a couple months.  Current price volatility and firmness is
partially due to the usual fluctuations in relative currency values
and recent reductions in EU export subsidies.  Australia has been
receiving some much needed winter rain but the overall volumes are not
yet adequate to consider the drought to be broken, even with reported
flooding in a few localized areas.  Total season Australian milk
production estimates continue to be tallied but a fairly good late
season may have production for the just completed season about even
with the previous season.

0930c George Koerner 608.224.5083

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