Oceania Dairy Market Overview

MADISON - May 13/04 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The major milk and dairy product production season is
rapidly coming to a close as winter approaches in Oceania.  Currently,
traders are really not interested in making additional dairy product
sales for the current season since overall supplies are very tight.
The current production mixture is concentrated toward building the
inventory needed for delivery of contracted product during the rapidly
approaching off-season.  For the season, overall milk intakes are up
about 4% in New Zealand but are down around 4% in Australia.  Current
milk intakes are falling off sharply in most producing areas.
International dairy product demand remains steady with some firmness
noted in powders and butter.  The weakening of the New Zealand and
Australian dollars against most major currencies is looked upon as
helpful for producer returns and for international interest in
products from the region.  The weaker currencies also affect the
reported product price ranges.

0930c George Koerner 608.224.5083

---

STAT News Service