Oceania Dairy Market Overview

MADISON - Mar 13/03 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA

OVERVIEW:  The international market for dairy products is fairly quiet 
with most buyers delaying activity because of concerns over the 
conflict in the Middle East.  In general, few new spot significant 
sales will originate from the region due to weather reduced production 
this season and limited inventory for winter shipments.  The stronger 
Australian and New Zealand dollars compared to the US dollar are 
another contributing factor in reported price ranges.  The milk 
production season is trending toward the traditional seasonal end in 
May in New Zealand with the current product mix targeted toward 
products in the tightest supply/demand situation.  Most producers have 
reduced milking schedules from twice to once per day and there are 
even some forecasts that many herds may dry up earlier than normal.  
Current supplies of exportable dairy products are limited.  Spot sale 
activity is limited to regular accounts due to concern about having 
enough product in inventory to fill current orders and the usual 
business expected in the off-season.  This contrasts to last year with 
large stocks available for off-season and early next season 
deliveries.  Generally, dry weather continues in New Zealand though 
recent light showers have aided conditions.  In Australia, recent 
rains have greened up pastures and lawns; even caused some localized 
flooding where the lack of cover and localized heavy rain combined.  
However, Australia remains in a sizeable moisture deficit position.  
Manufacturers remain concerned about being able to meet current 
commitments and to have adequate inventory entering the off-season.  
Concerns remain over the affect the drought will have on next season's 
production due to the extra culling, breeding, and the higher cost of 
feed.  

0930c george koerner 608-224-5083

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STAT News Service

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