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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STAT News Service
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