Oceania Dairy Market Overview

MADISON - Sep 15/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production continues to increase in the Oceania
region.  Weather conditions in both New Zealand and Australia are reported to
be positive for early spring.  In New Zealand, milk output is increasing at a
steady pace.  Milk producers and handlers remain optimistic about recovering
from last season's 3 - 4% decline.  Most dairy plants on both the North and
South Islands are operating and receiving milk.  Plant capacities remain low,
thus milk volumes have a ways to build before reaching capacity levels.  In
Australia, milk volumes are slowly increasing.  Milk production figures for
July were recently released which indicated that output for the first month of
the production year is 0.6% ahead of last year.  About 60% of all milk in
Australia is produced in Victoria which recorded a 0.8% increase over last
July.  Australian producers and handlers continue to project a 1 - 2%
production increase over last year and feel that the strength of late last
season may be carrying over into the new year.  Carryover stocks from the 2004
- 2005 production year are minimal, but in most instances, sufficient to
bridge the gap between old and new production.  New stocks are limited, but
building as milk volumes increase.  Manufacturers and traders report that most
early season production has been fully committed to regular and ongoing
customers.  Most producers and handlers indicate that it will be a number of
months before they will be able to consider if product is available for
additional or spot buyer interest.  Some international buyers are questioning
availability, but if they are not a regular buyer, are not having much
success.

0930c steve Schneeberger (608)224-5084

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STAT News Service