Oceania Dairy Market Overview

MADISON - Apr 24/08 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  As the milk production season winds down in
Oceania, milk producers continue to adjust their milking schedules
and, in many instances, are drying off their herds earlier than usual.
In both New Zealand and Australia, farmers are optimistic about the
upcoming production season and are focusing their attention on herd
conditioning during the upcoming winter months.  In many instances,
milk producers are disappointed in the current season, but are putting
this season behind them and looking forward.  Early season milk
production trends in New Zealand were positive and followed trends of
previous years with figures running 2 - 3% ahead of last season.  In
January/February, drought conditions, especially on the north island,
greatly altered production patterns and milk output suffered greatly.
With second half milk production momentum greatly impacted, seasonal
production estimates were reduced and most milk producers and handlers
are now projecting the 2007 - 2008 season to trail last year by 3%.
Typically on the downside of the season, milk volumes decline, but
level off at some point before further declines are noted, but this
year, milk handlers state that the decline remained steady with no
plateauing occurring.  In Australia, lack of moisture throughout most
of the season again negatively impacted the milk flow for another
year.  Early in the season, milk volumes were trailing the previous
season by nearly 10%, but as the season expanded, this negative figure
narrowed.  Milk producers and handlers in Australia anticipate that
milk volumes will trail last season by 5% or slightly less when the
season ends in a few months.  Some rainfall is being reported in both
countries which will help moisture levels for both the upcoming winter
period and the start of the new milk production season in
August/September.  Product availability is quite limited.  In most
instances, traders and handlers are hopeful that they will be able to
fulfill their contractual commitments without having to reach too
heavily to outside sources.

0930c steve Schneeberger  (608)250-3204

---

STAT News Service