Oceania Dairy Market Overview

MADISON - Aug 1/13 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  AUSTRALIAN milk production trends are
bottoming out at the low point of the cycle.  Winter conditions
are overall mild.  Higher milk prices are a positive sign for
dairy producers.  Feed supplies are currently hard to find and
are pricy.  Alternative feeds are being utilized until new crops
and pastures are available.  The decline in the AU dollar versus
the US dollar is a positive for the agricultural sector.  Recent
milk prices are being stepped up because of the return
projections and to be competitive with other processors.
According to Dairy Australia, June milk production in Australia
ran 6.8% lower than June 2012.  Milk output for the July 2012 -
June 2013 production year totaled 9.2 million litres, 3.0% lower
(unadjusted) than the previous production year.  For the 2012/13
year, unadjusted regional changes are:  New South Wales, -1.4%;
Victoria, -2.8%; Queensland -5.6%; South Australia -6.0%;
Western Australia -0.3%; and Tasmania -3.6%.  In 2012/13, the
regional shares of total production are:  Victoria, 65.6%; New
South Wales, 11.5%; Tasmania, 8.3%; South Australia, 5.8%;
Queensland, 5.0%; and Western Australia, 3.7%.
NEW ZEALAND milk output is seasonally light.  Pastures and
cropping conditions are in good shape.  Cows are reported to be
in fair to good stature entering the new production season with
the milk beginning to build in August.  Milk prices are
favorable for milk producers as they plan and finance ahead.
Milk growth is being forecast from flat to slightly higher for
the new production year, yet the comparisons versus the same
months may be skewed.  The previous season got off to a great
start with hefty gains recorded in early months.  Later, the
season ended in drought conditions and often early.  Dairy
product prices are mainly steady yet untested in limited,
seasonal trading.  Offering volumes are light for commodity
items as processors make value added products and products to
fill needs in the current, tight milk period.  Dairy plants are
being readied for the upcoming season.
0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152

---

STAT News Service