Oceania Dairy Market Overview

MADISON - Jul 19/12 - 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 year has begun, although
milk output remains at low seasonal levels.  In New Zealand,
winter weather patterns are reported to be typical and winter
moisture is in line with projections.  In Australia,  milk
producers and handlers are reporting that the winter season is
good.  An El Nino (dry) weather pattern continues to enter many
conversations of Oceania milk producers and handlers.  It is
still too early to speculate any further about this pattern, but
many producers and handlers are indicating that plentiful
moisture over the past year should help reduce the impact of an
El Nino weather pattern should it develop.  Milk producers in
the Gippsland region of Australia have been struggling with
excess moisture for much of the most recent season and would
welcome some drying time.  Milk producers in both New Zealand
and Australia are stating that winter conditions have been
basically favorable to the milking herd and herd conditioning
going into the upcoming season is positive.  The new milk
production season is just around the corner and reportable
increases will potentially be occurring within the next 4 - 6
weeks.  Milk production projections for the upcoming season
remain positive with producers and handlers very optimistic.
Although milk output was positive for the season just completed,
many producers and handlers are not projecting a second year of
comparable growth, but remain positive with output increases
from previous years running in the 4 - 5% range in New Zealand
while in the 2% range in Australia.  Traders and handlers are
reporting that some international buyers are looking to the
Oceania region for any end of season uncommitted stocks.  In
most instances, manufacturers and handlers in the Oceania region
do not have any uncommitted volumes for this buyer inquiry.  As
the new milk production season approaches, order books are in
good balance with projected output.  Manufacturers and handlers
are basically fully committed for the first three months of the
season with sales during the 3 - 6 month period often still
being finalized.  At the July 17 g/DT event, average prices for
all products were mixed from the previous event.  Average prices
for anhydrous milk fat, buttermilk powder, milk protein
concentrate, and skim milk powder were higher, while cheddar
cheese, rennet casein, and whole milk powder price averages were
lower.  Lactose did not trade.  The next two (2) g/DT events
will be held on Wednesdays, August 1 and 15.


0930c steve Schneeberger 608-278-4154

---

STAT News Service