Oceania Dairy Market Overview

MADISON - Mar 29/12 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

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OCEANIA OVERVIEW:

Milk production continues to trend seasonally lower in New
Zealand and Australia, but is running heavier than last year at
this time.  Manufacturers and handlers are indicating that the
extra milk volume at the end of the season is providing a
cushion of manufactured dairy products that was not anticipated.
In New Zealand, good late summer/early fall weather patterns are
contributing to a strong finish to the current milk production
season.  Reports are indicating that milk volumes are running
about 9% ahead of last year.  The extra milk flow is providing
additional volumes for manufacturing and much of this extra
manufactured product is ending up on the g/DT trading platform.
In Australia, weather conditions remain quite favorable for late
summer.  The heavy rainfall earlier this month and subsequent
flooding in Northern regions of Victoria has impacted between
150 and 200 farms.  Although the heavy rainfall has ceased,
early autumn rainfall continues to be reported.  Much of the
problem at this time is the dissipation of the water.  This
region is quite flat, thus water runoff is slow to occur.  The
extent of the flooding damage is still unclear, but for many
farmers, pastures and grazing paddocks will need to be reseeded
once water levels disperse.  Some of the farmers that had to
move their herds to high ground are starting to return to their
operations, but pastures and paddocks remain wet.  Although
flooding conditions impacted nearly 200 farms in this region,
milk handlers and manufacturers indicate that no significant
negative impact is expected to come out of the situation.  Milk
production in Australia continues to run over 4% higher than
last year at this time.  Prices for manufactured dairy products
in the Oceania region are trending lower.  At the March 20 g/DT
event, all products averaged lower to sharply lower prices.


0930c steve Schneeberger 608-278-4154

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STAT News Service