Oceania Dairy Market Overview

MADISON - Jan 19/06 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production continues to seasonally decline in
both New Zealand and Australia.  No major negative influences are
being reported to accelerate this decline.  At this point, New
Zealand's output continues to trail forecasts and appears to be
running about 2% behind last year.  In Australia, cumulative milk
production figures are running about 0.8% ahead of last year for the
first four months (July - October) and projections of a 1% increase
over last year remain.  November production figures will soon be
released with milk producers and handlers feeling that positive
results will continue to be reported.  Weather conditions in Victoria
are seasonal and favorable, while still dry in New South Wales and
Queensland.  Market activity remains quite steady with previous weeks.
 Traders and handlers report that there is no real new buyer interest
to report out of the Oceania region, although they indicate that
international buyer interest is starting to stir.  They do indicate
that they will not be able to acknowledge much, if any, of this
interest due to their previous commitments and the uncertainty of the
balance of the milk production season.  At this point, traders and
exporters state that they have adequate volumes of product to maintain
steady and on schedule shipments.  As the season winds down, traders
feel that they may have to reach to outside sources to fully
acknowledge their commitments.

0930c steve Schneeberger  (608)224-5084

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STAT News Service