Oceania Dairy Market Overview

MADISON - May 27/04 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  Milk production in Oceania has basically ended in
New Zealand with Australia's season end about a month away.  At this
point, unofficial production trends have output in New Zealand about
4% above last year with Australian production continuing to narrow the
deficit margins of earlier in the year.  Through March, milk output in
Australia continued to lag last year by 4%, but milk handlers are
optimistic that this deficit will become less by season's end.  Milk
handlers and producers indicate that the last half of the production
season was favorable and recovery of earlier losses occurred at that
time.  Most dairy product manufacturers and handlers continue to
report that stocks are in close balance with known needs.  In most
instances, they do not foresee having any surplus for spot or
additional buyer interest.  In New Zealand, most manufacturing
facilities have been shuttered for the season.  In Australia, milk
volumes continue to keep some plants active, while production
schedules in other plants are being reduced by days within a week.
Dairy product handlers report that there is buyer interest for end of
year supplies, but the limited supply situation has not changed, thus
most of this interest is going unfilled.  Negotiations continue to
occur for sales during the upcoming milk production season with much
of the early dairy product production fully committed.

0930c steve schneeberger  (608)224-5084

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STAT News Service