Oceania Dairy Market Overview

MADISON - Apr 24/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
AUSTRALIAN milk production has held fairly steady in the last fortnight.
Mild temperatures and the arrival of autumn rains, greening up pastures, are
helping maintain milk intakes above year ago levels.  Butter production has
declined following the holidays, but cream demand remains good, due to active
cream cheese production to fill export orders.  The good demand for cream has
marginally increased the production of skim milk powder with whole milk
powder production declining proportionally.  Increasing global milk and dairy
product production, in combination with lower export demand from China, have
been the major contributing factors in the recent price declines for most
dairy products.  The lower prices have prompted some buyers to re-enter the
market.  There are current tenders for milk powders coming from Algeria and
Venezuela.  According to Dairy Australia, March 2014 milk production in
Australia was 3.8% above March 2013. The state changes from a year earlier
are: New South Wales, -4.1%; Victoria, +5.3%; Queensland, -5.0%; South
Australia, -2.2%; Western Australia, +0.8% and Tasmania +16.6%. Australia's
milk production season to date is -1.4%, compared to last season.
NEW ZEALAND milk production in February was reported by DCANZ at 1.97 million
tons, up 11.8% from February 2013 and 5.3% higher than two years ago.
Current milk intakes are mixed with greater volumes coming from the South
Island.  Favorable weather conditions and timely rains have provided for more
than adequate forage growth and taken the pressure off winter grazing
supplies on the South Island, especially in the Canterbury region.  Dairy
herd expansion is continuing on the South Island with reports of at least 50
dairy conversions ongoing.   The North Island was hit with heavy rains and
high winds over the Easter weekend as remnants of cyclone Ita covered the
island.  Most producers on the North Island are in the midst of drying off
cows, managing feed stocks and preparing for the next season.  At the April
15 GDT event #114, average prices ranged from 8.6% lower to 0.6% 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,
$4,086 +0.6%; butter, $3,832 -4.9%; buttermilk powder, $4,075 -8.6%; cheddar
cheese, $4,273 -3.3%; lactose, n.a.; milk protein concentrate, $7,824 -7.0%;
rennet casein, $10,630 -4.3%; skim milk powder, $3,969 -4.4%; and whole milk
powder, $3,990 -1.6%.
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
     INVITATION TO SUBMIT COMMENTS FOR CONSIDERATION TO CHANGE
             DAIRY MARKET NEWS (DMN) REPORTING PROGRAM
AMS is requesting comments regarding existing reporting guidelines and
market coverage of all DMN reporting programs. Comments should clearly
include the commenter's position on current product specifications,
product coverage, or reporting guidelines. Any justification for
proposed changes and relevant information to support those views should
be included. Any comment relating to any aspect of market reporting
will be considered. Three key areas of interest are:
     1.  adding market coverage of skim milk powder (SMP)
     2.  including resale prices in market price series
     3.  evaluating lactose mesh size in market price series
Comments should be faxed, emailed, or mailed, and comments should be
received by May 23, 2014. Comments and questions may be directed to:
Butch Speth, National Supervisor, Dairy Market News
2920 Marketplace Drive, STE 202
Fitchburg, WI 53719-5337
Phone: (608) 278-4152
Fax: (608) 278-4141
DMN@ams.usda.gov
The complete announcement is available on the DMN website in the
What's New menu: http://www.ams.usda.gov/DairyMarketNews

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STAT News Service