STAT Communications Ag Market News

Oceania Dairy Market Overview

MADISON - Mar 27/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
AUSTRALIAN late season milk production is above year ago levels.
Good milk prices are prompting producers to extend late season
production with supplemental feeding.  Meteorological forecasts
are calling for average rainfall through the end of the
production season.  The Australian hay situation, as reported by
Dairy Australia, shows hay supplies very short in Northern
Australia, due to the hot, dry conditions earlier in the year.
Northern hay buyers are focusing on Victoria hay supplies to
augment their needs.  Irrigated areas of Northern Victoria are
growing hay again with some producers up to their fourth or
fifth cuttings.  Western Australia is also dry with demand for
hay holding steady.   The hay supplies in Western Australia are
of variable quality.  Efforts are being made to expand milk
powder production in Australia by various entities.  If all
investor efforts come to fruition, there would be 4 new plants
contributing to the supplies of milk powders.  Some of the
expansion efforts are contingent upon increasing milk supplies.
NEW ZEALAND milk production in January was reported by DCANZ at
2.47 million tons, up 7.4% from January 2013 and 12% higher than
two years ago.  Cyclone Lusi underperformed, and provided less
rain to the dry North Island than was expected.  The current dry
conditions on the island are prompting producers to dry off
lower producing cows, to better conserve feed supplies.  The
South Island has received timely rains keeping pastures in good
condition.  Current milk production for New Zealand is good with
volumes at or above expected volumes.  The expanded year end
volumes are allowing manufacturers to fill their contracted
orders with additional supplies available for the spot market.
At the March 18 GDT event #112, average prices ranged from 10.7%
lower to 4.6% higher from the prior event across categories. The
all contracts price averages (US$ per MT) and percent changes
from the previous average are:  anhydrous milk fat, $4,578 -
10.7%; butter, $4,534 -4.4%; buttermilk powder, $5,253 +4.6%;
cheddar cheese, $4,641 -4.1%; lactose, not sold; milk protein
concentrate, $8,837 +3.7%; rennet casein, $10,533 -10.7%; skim
milk powder, $4,584 -1.7%; and whole milk powder, $4,439 -5.8%.
0930C rick.whipp@ams.usda.gov 608.278.4151
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal:
www.marketnews.usda.gov/portal/da

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