Oceania Dairy Market Overview

MADISON - Jan 8/04 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production in Oceania is on the down side of the 
season.  In Australia, hot temperatures are being reported in the Victoria 
region of the country.  Temperatures in the 35 - 40 degrees Celsius (mid 90's 
to over 100 degrees Fahrenheit) are common over much of the major milk 
producing region of the country.  Milk producers and handlers state that these 
temperatures will not help the already lower milk production trends in 
comparison to last year.  Through November, milk output in Australia is 
reported to be trailing last year by 6.8%.  This is an improvement over 
previous months and producers remain optimistic that the season as a whole 
will continue to improve.  In New Zealand, production trends continue to 
follow those of recent weeks.  Milk output is declining seasonally, but is 
reported to be running 3 - 4% ahead of last year.  Stocks of manufactured 
dairy products remain in close balance with demand.  Some handlers in Oceania 
indicate that they have no additional butter or cheese available for spot or 
additional buyer interest.  The overall tone to Oceania dairy markets is firm 
with prices unchanged to slightly higher.  Most market activity out of 
Australia and New Zealand at this time is shipment of pre-negotiated sales 
earlier in the season.  No new buyer interest is being reported from the 
region, although most handlers indicate that they would probably not be able 
to acknowledge much, if any at all, new buyer interest due to their tight 
supply situation.

0930C STEVE SCHNEEBERGER  (608)224-5084 
 

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STAT News Service

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