Oceania Dairy Market Overview

MADISON - Nov 10/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Adverse weather conditions of the past month or so in New
Zealand continue to impact milk production.  Many milk producers and handlers
state that the season started off very positively, but deteriorated as output
neared seasonal peak times of the year.  Some handlers feel that the peak or
at least the seasonal highs for the year were 2 - 4 weeks earlier than usual.
They are stating this because milk receipts did not increase and in instances,
started to slip a little at the same time as cool wet conditions occurred.
Typically, late October is peak production times for most New Zealand
producers.  No official production figures have been released, but milk
handlers state that volumes appear to not have reached year ago levels at peak
production.  Although the season is past the peak, producers and handlers
remain optimistic about the second half of the year.  At this time, no
significant declines are being reported, thus they are hopeful that seasonal
declines will be very gradual.  In Australia, milk output is at or very near
peak levels in most regions.  Good weather patterns have been reported with
sufficient moisture to keep pastures green and regenerating.  Official
September production figures are not released, but unofficial estimates
indicate that output should be running ahead of last year.  Stocks of
manufactured dairy products are sufficient to maintain scheduled shipments.
Handlers and traders are not overly concerned about lack of supply due to
lighter than anticipated milk output in New Zealand.  Granted, they probably
will not have quite as much product generated during the first half of the
season as projected, but most state that there is still quite a bit of time
left to the milk production season.  Prices for most products are mixed, but
for the most part, holding steady around previous quotes.  Second half sales
negotiations are underway with most needs known.  Unsure about additional
stocks for new or spot buyers, most handlers are reluctant to acknowledge any
of this buyer interest at this time.

0930c steve Schneeberger  (608)224-5084

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STAT News Service