Oceania Dairy Market Overview

MADISON - Aug 29/13 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  AUSTRALIAN milk production is steady to
slightly higher on a week-to-week basis.  There are more cows
being added to the milking strings and the pasture growth
situation is good for the time being.  Rains and above normal
temperatures are resulting in good feed values for pastures.
There are concerns in some areas of Queensland and New South
Wales about conditions being too wet and pastures being affected
by herd traffic.  Milk price step-ups are being noted by
additional processors.  The higher milk prices are a result of
better export returns.  Advantageous commodity product prices
and the relatively weaker value of the Australian currency are
favorable to exporters.   Dairy farmers see the potential for a
more favorable year with their financials.  According to Dairy
Australia, July milk production in Australia is 3.5% lower than
July 2012.  The state changes from a year earlier are:  New
South Wales, -5.3%; Victoria, -3.3%; Queensland -3.0%; South
Australia -9.4%; Western Australia +0.8%; and Tasmania +3.8%.
NEW ZEALAND milk production in June was recorded by DCANZ at
122,000 Tons, down 6.9% from June 2012 and 3.9% below two years
ago.  June is typically the lowest output month of the season
with production only 3 - 5% of the volumes at the peak month,
normally seen in October.  Current milk production at the end of
August is noted to be building with plant intakes increasing.
Conditions are favorable for early season pasture growth and
cows are in good condition entering the start of the season.
Milk price gains are being announced with some payouts, if
realized, being at or near record high levels.  Dairy product
prices are generally steady to slightly higher.  Demand is fair
to good for offerings.  Export interest is rated best with
buyers seeking coverage for needs.
At the August 20th gDT session #98, the all contracts price
averages (US$ per MT) and percent changes from the previous
average are:  anhydrous milk fat, $4,931 +7.1%; butter, $3,614
+3.3%; buttermilk powder, $4,689 -3.1%; cheddar cheese, $4,375
+0.9%; lactose, not traded; milk protein concentrate, $7,828
+1.5%; rennet casein, $10,085 +1.9%; skim milk powder, $4,426 -
0.7%; and whole milk powder, $5,124 +2.7%.
0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service