Oceania Dairy Market Overview

MADISON - Aug 4/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The milk production season, though very early, has begun in
Oceania.  It is still too early to predict how the year will develop, but
producers and handlers are optimistic about the 2005 - 2006 season.  In New
Zealand, reports indicate that July has been the warmest in many years, thus
early spring temperatures are conducive to a favorable start.  Milk volumes
are reported to be slightly higher on the South Island and slightly lower on
the North Island for this time of the season.  In the past few weeks, a
smaller dairy plant in northern areas of the South Island had a fire.  Damage
occurred and warehoused stock was lost.  Reports indicate that the plant will
not be ready for the start of the new milk production season as it develops.
Plans are to rebuild the operation, but the product mix from this facility
might change.  In Australia, the new milk production season is not quite as
aggressive as in New Zealand.  Producers and handlers state that it will be a
few more weeks before their season resumes.  Shipments of manufactured dairy
products continue out of Oceania.  Traders and handlers state that inventories
of warehoused dairy products are dwindling and many are pleased that the new
milk production season is beginning or soon to resume.  In most instances,
stocks will be sufficient to meet commitments, although some feel that they
may have to reach to outside sources to fulfill all needs.  Others are hopeful
that they will not have to reach too far into new production to fulfill their
commitments.  As has been the situation for much of the past production
season, handlers and traders still indicate that there will basically be no
Oceania stocks for additional or spot buyer interest at this time.

0930c steve Schneeberger  (608)224-5084

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STAT News Service