Oceania Dairy Market Overview

MADISON - Jun 19/08 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production in the Oceania region is at
seasonal low levels.  Producers and handlers state that the current
season is behind them and they are optimistically looking forward to
the new season.  Annual production figures are not yet finalized for
New Zealand, but preliminary projections are that output will trail
last season by about 4%.  In Australia, drought conditions continued
to impact milk output for much of the season, although the season is
ending up better than early indications.  Milk production data for
Australia was recently released for the first ten months of the year
(July - April).  Cumulatively for the ten months, milk production
continues to lag last season by 5.3%, but the negative trend in
comparison to last season continues to narrow.  If this trend
continues for the remaining two months, milk handlers project that
annual 2007 - 2008 milk output in Australia will trail last season by
about 5%.  Milk handlers state that the end of the season has been
good, thus this final figure might even dip under 5%.  Milk producers
and handlers in both countries are looking forward to the new milk
production season with optimism.  Both countries will be dealing with
a negative 2007-2008 season which provided milk volumes to be lower
than the previous year basically due to lack of moisture.  New
Zealanders will be working with a milking herd that reacted negatively
to the lack of moisture and thus need to reestablish what was lost in
that season.  Herd health and conditioning during the fall and winter
months are crucial to a positive start to the upcoming season.  The
situation in Australia is much the same.  Another factor that will
impact the new production season is moisture and weather conditions
during the winter season.  New Zealanders are indicating that winter
temperatures are colder than usual, thus the start might be slower.
In Australia, winter moisture continues to be a concern for dairy
producers and agriculture in general.  Up to the this point in the
winter season, moisture has not been overly plentiful, thus milk
producers indicate that during the next four to six weeks, measurable
moisture is crucial for winter crops and establishment of pastures for
the new season.  Traders and handlers of dairy products indicate that
manufacturers and potential buyers are cautiously optimistic about the
new season.  In most instances, both buyers and sellers are not over
extending themselves with their orders or supply availability.

0930c steve Schneeberger  (608)250-3204

---

STAT News Service