Oceania Dairy Market Overview

MADISON - Sep 29/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The 2005 - 2006 milk production season is off to a positive
start in both New Zealand and Australia.  In New Zealand, weather conditions
have been quite favorable and pasture growth is progressing well.  In
Australia, milk output continues to build.  Milk production during August was
up 0.8% over last August and is 0.7% ahead of last year on a cumulative (2
months) basis.  Up to this point, moisture has been sufficient to generate
early grass growth.  Producers remain optimistic about the upcoming season,
although some Australian contacts are stating that dryer conditions are being
forecast through the end of the calendar year which could greatly influence
milk production volumes for the year.  Manufacturing facilities continue to
process the increasing volumes of milk in both countries.  Plants are not at
capacity yet, with peak production still 6 - 8 weeks away.  Producers and
handlers continue to state that a large portion of current and future
production has been committed to regular and ongoing customer needs.  Traders
and handlers indicate that some new buyer interest is occurring, but minimal
in comparison to overall sales activity.  Much of this new interest is going
unfilled at this time.  Traders are stating that regular and ongoing customer
needs appear to be in line with previous years with minimal increases being
reported.  Prices are generally steady although a slight weakening trend is
occurring at the upper end of some manufactured dairy products' price series.

0930c steve Schneeberger  (608)224-5084

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STAT News Service