Oceania Dairy Market Overview

MADISON - Jul 5/12 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:

The Oceania 2012 - 2013 milk production season is off and
running.  Although milk volumes remain at low seasonal levels,
milk producers and handlers are very optimistic about the
upcoming season.  In New Zealand, unofficial figures are not yet
released, but milk producers and handlers are speculating that
the 2011 - 2012 production year finished around 9% stronger than
the previous year.  Looking forward to the 2012 - 2013 year,
estimates are that milk volumes will run between 4 - 5% ahead of
the year just completed.  In Australia, the milk production
season was equally positive and unofficial annual production
figures are around 4% stronger that last season.  Early
estimates for the current year are running in a positive 2%
range.  Winter weather patterns are being reported in both
countries.  Temperatures and moisture conditions are typical in
New Zealand, while wet and cold in Australia.  Some areas of
Australia, especially in the Gippsland area of Victoria,
continue to struggle with wetter than usual conditions, even in
the winter months.  Traders and handlers are reporting that
order books are filling for the first half of the upcoming
production season.  Most needs and contracts are in place for
the next six months with volumes comparable to previous needs.
Traders do indicate that some additional buyer inquiry is
occurring, but this inquiry is going unfilled at this time as
manufacturers and handlers make sure that regular and ongoing
customer needs are acknowledged first.  Prices for most dairy
products were firming a few weeks ago, but this trend has
stabilized and in instances eased a little.  At the July 3 g/DT
event, average prices for all products declined from the
previous event.  Average prices for all products decline 0.7 -
10.4%.  Whole and skim milk powder prices eased 4.1% and 9.8%
respectively, while anhydrous milk fat declined 10.4%.




0930c steve Schneeberger 608-278-4154

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STAT News Service