Oceania Dairy Market Overview

MADISON - Sep 26/02 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA

OVERVIEW:  New Zealand is off to a good early start to the new milk 
production season.  More conducive weather, warmer temperatures, and 
rain have allowed for good early spring pasture conditions.  Current 
plant milk receipts are running in the area of 8% above comparable 
last season levels with the expectation of receipts for the full 
season more in the 2% higher area.  Peak milk receipts are not 
expected for at least another few weeks.  Current production is 
targeted towards whole and skim milk production to help with early 
season demand.  Tight international powder supplies and the return of 
some international customers to the market have helped powder prices 
to increase while butter and cheese prices are generally steady.  
Also, the spreading out of the US DEIP awards over more of the year 
was viewed as positive and not nearly as disruptive to recent 
international price increases in the powder markets.  In Australia, 
severe drought in some provinces including northern Victoria, the 
major milk producing region, has producers concerned about pasture 
conditions and feed availability for summer.  Also, higher feed costs 
and the current low farm gate milk prices may reduce milk intakes.  At 
this time, some forecasts have Australian milk production for the 
season even below the previous season.  

0930C george koerner 608-224-5083 

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STAT News Service

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