Oceania Dairy Market Overview

MADISON - Sep 27/07 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The early spring season has not been overly conducive
for milk production in New Zealand and current milk receipts, though
above last year's level, have not been as strong as earlier forecasted
for the early part of the season.  Forecasts on peak milk receipt
levels are also being reduced slightly.  Early season milk receipts
are only up around 1 percent from last year in New Zealand.  Milk
intakes continue to increase toward the late October/early November
seasonal peak.  Current milk use is trending toward production of
powders, at least early in the season.  Australia also continues to
struggle to meet early season sale contracts.  Some major dairy areas
remain very dry while some others have continued to receive much
needed rain.  Pasture conditions vary accordingly.  Cattle feed and
water purchase prices have increased with some producers selling their
irrigated water rights for the season in the hope of more rain and
available purchased feed.  Producers continue to limit cattle numbers
to the feed supply available.  Most manufacturers have increased
producer pay prices to encourage producers to continue dairying
despite the current high input cost conditions.  Early spring milk
receipts have not been as strong as hoped for in the off season and
plants are often delayed on early season deliveries.  Many sellers are
delaying making new sales for later 2007 until they fill the ones made
previously.  Manufacturing schedules continue to increase seasonally
as milk supplies build toward the seasonal peak in a month or so.

0930C George Koerner 608.250.3205

---

STAT News Service