Oceania Dairy Market Overview

MADISON - Mar 27/03 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:   Milk production trends in the Oceania region 
continue to decline seasonally.  In New Zealand, reports indicated 
that dry conditions were developing, thus milk production was 
projected to drop more sharply than desired, causing concern on the 
part of manufacturers and exporters.  In recent days, some much needed 
moisture has fallen in the major dairy areas, causing plant receipts 
to increase slightly or at least stabilize, relieving some of the 
unsettling concerns.  With this reprieve in milk production declines, 
manufacturers and handlers of dairy products are more comfortable with 
their supply/demand commitments.  As the milk production season winds 
down, some producers that were considering reducing their milking 
schedules to one time per day or for those that had already adjusted 
their schedules and now are considering complete dry off, are putting 
these considerations on hold as milk production recovers slightly.  In 
Australia, lack of moisture continues to plague most of the main dairy 
areas of the country, although some moisture has fallen in recent 
days.  Basically all season, milk production reports in Australia 
indicated that milk output for the year would be down around 10%, 
although some handlers speculate that this late season moisture will 
hopefully improve this annual figure.  As milk production declines, so 
are manufacturing schedules in both Australia and New Zealand.  For 
the most part, all plants remain open, but are adjusting processing 
schedules to accommodate lower milk intakes.  Casein output has 
basically ended which is the first Oceania dairy product to cease 
production as milk volumes decline.  Stocks of manufactured dairy 
products are in close balance as contractual commitments are filled.  
Most manufacturers and traders feel that they will be able to meet 
these commitments, especially now with the slight up tick in milk 
production as the season end nears.  Most continue to indicate that 
they will have very little, if any at all, additional stock to offer 
on a spot basis.

0930c steve Schneeberger  (608)224-5084   

---

STAT News Service

The subscriber version of the article is available by Clicking here