Oceania Dairy Market Overview

MADISON - Mar 19/09 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production continues to seasonally
decline in the Oceania region.  In New Zealand, milk handlers are
projecting that seasonal output will be ahead of last season?s
drought influenced output by 3 - 4%.  In Australia, positive milk
production projections earlier in the season are now being
adjusted lower and milk handlers and producers are now projecting
that output will be closer to balanced with last season.  Within
the past few weeks, official milk production figures for the
first seven months of the year (July - January) were released
which indicated that output was running 5.5% ahead of the
previous year.  Milk producers and handlers feel that this
positive figure will quickly disappear during February when
record setting temperatures were recorded which negatively
influenced production trends.  Many state that these hot
temperatures quickly knocked steady declines in output without
recovery.  Temperatures have moderated and recovery is not
occurring to any great extent.
In the past 4 - 6 weeks, many Oceania manufacturers and handlers
were quite concerned about their supply/demand imbalance, but in
recent weeks, this imbalance has become more manageable.  In many
instances, Oceania suppliers and handlers indicate that they are
comfortable with their end of the season outlook.  Traders and
handlers state that buyers are returning to the market place as
many need stock, but also realize that prices are steady to
slightly firmer.  Traders state that they are pleased that buyer
interest is resuming, but are also aware that currency issues and
availability of cash to purchase will be factors that will limit
potential sales for coming months.

0930c steve Schneeberger  (608)250-3204



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STAT News Service