Oceania Dairy Market Overview

MADISON - Feb 27/03 - 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 the Oceania region, 
the lack of moisture in Australia continues and now in New Zealand, a lack of 
moisture is also appearing to be developing which may negatively impact final 
production trends.  Production trends in Australia continue to indicate that 
milk output is trailing last season by about 10% with output in New Zealand 
running 1-1.5% ahead of last year.  In Australia, some recent rainfall has 
occurred in drought stricken areas, enough to green pastures, although still 
short of needed volumes to replenish depleted water levels.  In New Zealand, 
early on, milk handlers were optimistic with the start of the down side of the 
milk production season.  Now with dryer conditions developing, many are 
hopeful that milk volumes, on an annual basis, will break even with last year. 
Some milk handlers and corresponding manufacturing facilities are beginning to 
adjust production schedules, reflecting the declining volume of milk.  
Although early, some milk producers are already reducing their daily milking 
schedules from twice to once a day.  For the most part, stocks of Oceania 
produced dairy products are reported to be in close balance with demand.  With 
much of their seasons' output pre-sold, most Oceania producers and handlers 
are making ends meet with very little, if any, available for spot buyer needs. 
 At this time, most international trading activity is centered around delivery 
of previous sales from Oceania and elsewhere in the world, with minimal new 
buyer interest being reported.  Prices are holding basically steady with past 
weeks and are very competitive with other international prices.

0930c steve Schneeberger  (608)224-5084   

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STAT News Service

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