Oceania Dairy Market Overview

MADISON - Feb 14/08 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production is declining from the annual milk
peak with current weather conducive or fairly comfortable for summer,
if still somewhat dry, in Australia.  Australia has been receiving
good rains, from average to above average amounts, in most areas over
the past 3 months, though not always in the major dairy producing
areas.  Eastern area cropping regions have been receiving average to
above average precipitation.  Australian milk receipts are narrowing
the gap with year ago levels as levels were sharply lower the second
half of last season.  Good world interest is noted in whole milk and
cheese though manufacturers are reluctant to make more as most is made
with peak milk receipts.  New Zealand is currently experiencing a
serious drought with Waikato, the major dairy area, among the hardest
hit.  Cattle culling, not necessarily just dairy animals, is active
and some producers are already down to milking just once a day.
Warmer summer temperatures in the 80s and 90's (F) are adding to the
stress on animals.  Producers are feeding cattle from stored feed
supplies.  Supplemental feed prices are higher and the government is
looking at ways to help stressed producers.  The current forecast for
the season is being revised lower and current milk intakes are well
below comparable previous year levels.  Exporters are concerned with
meeting commitments for the current season and are not making spot
sales at this time.

0930c George Koerner 608-250-3205

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STAT News Service