Oceania Dairy Market Overview

MADISON - Mar 18/04 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Oceania milk production continues to wind down seasonally.
In New Zealand, recent heavy rainfall has had a mixed impact on overall milk
production patterns for this time of the season.  Although the rainfall has
basically ended, some heaviest hit areas are still trying to rebound/recover
from the excessive volumes of moisture.  In other areas, the moisture was
heavy, but pastures and the milking herd were able to adjust to the moisture
volumes better.  At this point, seasonal milk production projections continue
to run in the 2 - 3% heavier range in comparison to last season.  Milk
producers and handlers are hopeful that this moisture will help stretch the
end of the milk production season a little later than recent years.  In
Australia, milk production continues to lag last year, although the deficit of
a few months ago of 7 - 8% has now been narrowed.  For the period of July -
January, milk output is running 5.5% behind last season.  For the first month
this season, January's production surpassed its' comparable month last season.
Milk producers and handlers are hopeful that this trend will continue and
the end of the production season will finish strong.  Stocks of manufactured
dairy products continue to be reported as tight.  Most handlers and traders
feel that they will be able to fulfill their contracted commitments, but also
indicate that there will have very little, if any, additional product
available for spot buyer interest.  As the milk production season declines,
manufactures, when possible, are directing milk toward products of most need
or best return.  At this point, production of most products remains seasonally
active, with cheese output garnering additional milk volumes when available.

0930c steve schneeberger  (608)224-5084

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STAT News Service

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