Oceania Dairy Market Overview

MADISON - Mar 18/10 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:

      The milk production season in the Oceania region
continues to wind down.  In New Zealand, milk volumes are
trailing projections, but milk handlers continue to project an
overall milk volume increase of 2% over last season at seasons
end.  During the down side of the production season, some
areas were quite limited on moisture which negatively impacted
pasture growth and milk production.  In recent days, some
moisture has fallen which will help pasture growth, but will
have minimal impact on milk output recovery.  Milk handlers
state that the downward trend in milk output may level
somewhat.  This is the time of the season when milk volumes
are shifted from one location to another if logistically and
financially feasible.  In some instances, this is not possible
and plants continue to operate on reduced schedules.  Casein
production has basically ceased for the season, although one
plant is still in operation due to logistic constraints.  In
Australia, milk output is on the down side, although the
decline will hopefully not be as sharp as in some years and
some of the seasonal declines thus far can be recovered.  Milk
producers and handlers are stating that rainfall during the
second half of the production season has been more favorable
than in recent years, thus pasture growth is being maintained
better by rainfall versus low irrigation water levels.  Many
traders and handlers are stating that buyer interest appears
to be improving.  In many instances, Oceania suppliers have
minimal, if any, product available for this buyer interest.
Many do indicate that their projected volume needs will not be
attained this season, but also state that they are comfortable
with their supply/demand situation at this time.


1100c steve schneeberger (608)250-3204

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STAT News Service