Oceania Dairy Market Overview

MADISON - Sep 14/06 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The new milk production season in Oceania continues
to develop along typical patterns.  New Zealand's output is
increasing, but milk producers and handlers indicate that it is still
too early to project how the season will develop.  Most producers and
handlers are optimistic that the 2006/2007 season will yield the
volumes of the previous season and hopefully build from there.  In
Australia, the 2006/2007 production year has begun, but milk volumes
remain low. The Australian milk production season usually trails New
Zealand by about a month, thus production growth remains minimal.
Lack of moisture in recent weeks is a concern for many.  Manufacturing
facilities in both countries are basically ready for the new
production season.  In New Zealand, milk receipts at plants are
increasing, but remain low in Australia.  Shipments of manufactured
dairy products out of Oceania continue to be filled from inventoried
stock from the 2005/2006 production year with some new product,
especially from New Zealand, departing their shores.  Traders and
handlers report that during this carryover period of the year,
supplies are basically in close balance with most stock in a very
close, hand to mouth situation.  Butter shipments are strong for this
early in the season, because sales are good as buyers accumulate
inventory prior to the start of Ramadan.


0930c steve Schneeberger (608)250-3204

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STAT News Service