Oceania Dairy Market Overview

MADISON - Sep 12/13 - 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
higher.  Levels are generally around year ago marks, but vary on
locality.  The temperatures have been warm with adequate
moisture for pasture and crop growth.  Conditions are favorable
for the start of the new season milk.  Cows are in good
condition coming off the winter season.  Milk price step-ups
were recently announced by another processor.  The increasing
prices are welcome news to dairy farmers.  There is good demand
locally for consumer dairy products.
Dairy Australia's forecast is for milk production growth of 1-3%
for the 2013/14 season, putting output at 9.3-9.5 billion
litres.
The milk production season is ramping higher in NEW ZEALAND.
More cows are calving and entering the milking string.  Milk
processing is building and more plants are coming on line and
seeing milk intakes.  Schedules are being negotiated to make the
products of greatest needs, which is favoring whole milk powder.
Early season indications are that milk is tracking at or
slightly higher than year ago levels.  While percentage changes
based on limited output times can exaggerate a non-issue, the
plus side is a positive to get production on track after a
pronounced end of the past season.  Pasture conditions are noted
to be good.  The recent WPC contamination was actually a non-
issue upon further testing.  The news is bringing relief to all
trading partners involved.
Product prices ranges were mixed this reporting period.  The
trade situation is somewhat unsettled.  There are concerns about
the new wave of production at the start of a year with favorable
conditions and milk pricing.  Yet, pricing levels are holding up
well at the GDT auction with increased offerings.  There is fair
to steady demand from China and other exporting partners.  But,
there are some uneven trends from other countries, due to
various political, economic, and price level concerns.
At the September 3 GDT event #99, average prices were mixed from
the prior event. The all contracts price averages (US$ per MT)
and percent changes from the previous average are:  anhydrous
milk fat, $5,109 +3.1%; butter, $3,710 +2.7%; buttermilk powder,
$4,566 +0.3%; cheddar cheese, $4,257 -3.2%; lactose, $1,359
n.a.; milk protein concentrate, $7,613 -3.8%; rennet casein,
$9,864 -2.1%; skim milk powder, $4,420 -0.8%; and whole milk
powder, $5,058 -1.7%.
0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152

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STAT News Service