Oceania Dairy Market Overview

MADISON - Feb 13/03 - 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 continues to edge lower.  In 
Australia, the most recent production figures indicate that the trends that 
have been present all season continue.  Milk output is projected to be about 
9.5% lower than last season to around 10.2 billion liters.  Milk production in 
Victoria, the major milk producing state of Australia, is estimated to be down 
about 12% from last season.  Milk producers and handlers indicate that at this 
point these are the production projections, but by years end, overall 
production could be further impacted.  Moisture remains limited throughout the 
dairy regions of Australia.  Some measurable rainfall has occurred in Northern 
Queensland which has helped low moisture levels, although this region of 
Australia has limited dairy.  Most are hopeful that April rainfall will help 
replenish depleted moisture conditions, but considerable rainfall will be 
needed to accomplish this.  In New Zealand,milk production is on the down side 
of the season, although recently, further declines have dissipated and a 
leveling or a stabilizing pattern is occurring.  At this point overall milk 
output in New Zealand is running about 1% ahead of last year.  Minimal 
rainfall has occurred throughout the islands, but basically only enough to 
maintain green conditions and not enough to dispel drought possibilities.  
Market conditions in the Oceania region are much the same as has been the case 
in recent weeks.  Prices have firmed with stocks of manufactured dairy 
products in close balance and in instances, short of full needs.  Milk volumes 
are being directed towards products of most need.  Reports indicate that full 
cream milk powder is receiving the nod followed by cheese and casein 
production.  At this point, casein production remains active, although this 
product is the last to come on line and the first to close down for the 
season.

0930c steve Schneeberger  (608)224-5084   

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STAT News Service

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