Oceania Dairy Market Overview

MADISON - Aug 15/13 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  AUSTRALIAN milk production is holding mostly
steady to slightly higher.  The production season remains at the
lower point of the trough.  Producers are poised to begin the
seasonal start well.  Cows are generally in good condition, the
new season grain crops are on track, pasture health is rated
good, milk prices are favorably positioned, and farm financials
have improved.  Weather conditions are currently favorable.
Processing plants continue to run on reduced schedules with most
product made presently servicing local accounts or are making a
needed, value added product.  NEW ZEALAND milk production is
idling in low gear ahead of the anticipated growth as the new
season begins.  Rains were recorded over the last weekend.
Pasture conditions are ranked as near normal to above normal
across the dairy regions.  Trade articles are noting some
concerns about pasture growth being too active before cows are
grazing.  Feed conditions are adequate to good ahead of the
seasonal growth.  News of product contamination of WPC indicates
that several importing countries have stopped importation of WPC
and other products.  The restrictions and implications are being
assessed and addressed.  Dairy product price movements were
uneven across categories.  The latest GDT results were trending
lower, but the trade felt levels held up well against the
increased new season offerings and in the face of early news on
the WPC incident.  Outside of the auction, traders are
establishing sales for later quarters.  Production trends have
been at low levels, reflective of the low volumes of milk
receipts.  Very hot temperatures in Japan and China are noted,
raising some concerns on the impact, if any, on dairy product
demand, storage and sales.  At the August 6th gDT session #97,
prices for the major categories were mostly lower from the prior
event.  The all contracts price averages (US$ per MT) and
percent changes from the previous average are:  anhydrous milk
fat, $4,612 -4.9%; butter, $3,499 -5.5%; buttermilk powder,
$4,641 +0.4%; cheddar cheese, $4,335 -4.4%; lactose, not traded;
milk protein concentrate, $7,751 n.a.; rennet casein, $9,904
+1.2%; skim milk powder, $4,451 -3.0%; and whole milk powder,
$5,021 -1.6%.
0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service