Oceania Dairy Market Overview

MADISON - Oct 13/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The milk production season in Oceania continues to expand.
In New Zealand, milk producers and handlers indicate that milk output is
gaining momentum on a steady basis.  Milk production is positive on the North
Island and milk handlers state that very good growth is also occurring on the
South Island.  Although it seems that the season just began, milk handlers and
producers feel that peak production is just 2 - 3 weeks away.  In Australia,
milk output continues to increase.  Milk production figures for the first two
months (July and August) indicate that cumulative production is 0.8% ahead of
last season.  August's production is 1.1% ahead of last August.  Victoria, the
major milk producing region of the country, realized a 2.4% increase over
August of last year.  On a cumulative basis, Victoria is running 1.6% ahead of
last year for the first two months of the year.  Australian milk handlers and
producers feel that peak production is still 4 - 6 weeks away.  Manufacturing
facilities are running near capacity levels in both Oceania regions.  Milk
volumes are clearing to all manufactured dairy products with casein production
also on the increase.  Typically, casein output is the last to resume
production and the first to cease production.  At this time, casein producers
are projecting production to be in line with last season.  Overall, prices for
most manufactured dairy products are holding steady with some slight declines
noted at the top end of recent quotes.  Stocks are fully sufficient to
maintain steady shipments to regular and ongoing customers.  As has been the
case for much of the current season, surplus stocks are limited and in most
instances, not sufficient to fulfill spot or new buyer inquiries.

0930c steve Schneeberger  (608)224-5084

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STAT News Service