Oceania Dairy Market Overview

MADISON - Apr 1/04 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production patterns in Oceania continue to edge lower.
In Australia, measurable rain has fallen in much of the dairy region and
temperatures were in the 31 degree Celsius (mid 80's F) range. These
conditions were looked upon quite favorably with many producers and handlers
hopeful that the conditions might extend the production season slightly
longer.  Recent milk production figures have not been released for Australia,
but handlers and manufacturers indicate that overall volumes will be below
last year levels.  The most recent figures, July - January, indicated that
output was trailing last season by about 5.5%.  In New Zealand, conditions are
much the same as recent weeks.  The areas hardest hit with the heavy rainfall
in recent weeks continue to dry.  Overall production trends continue to
decline, although the declines are not accelerated by adverse conditions.
Milk handlers report that they do not have a good feel as to the impact these
heavy rains will have on end of the season production, but remain optimistic
that the season will stretch out a little longer.  Most milk handlers
anticipate production to remain on track of a 2 - 3% increase over last
season.  Stocks of manufactured dairy products are limited to contracted
needs.  Handlers and traders feel that they will have adequate stocks to meet
needs, but will have very little available for spot buyer interest.

0930c steve schneeberger  (608)224-5084

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STAT News Service

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