MADISON - May 8/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: AUSTRALIAN milk production has benefitted from some timely and targeted rains which brought about an autumn bump to milk volumes. The rains have improved pasture and crop conditions. The good margins are also incentivizing producers to take advantage of the situation and extend the milking season. Australian meteorologists have issued an El Nino alert for the country, indicating an increased probability of drought conditions in the coming months. The autumn bump in milk production has marginally increased production of butter and skim milk powder. Milk production in NEW ZEALAND is transitioning from maintaining or maximizing current production levels, to winding down current production operations and preparing for next season. This transition typically occurs this time of year. The recent storms that caused flooding on the North Island and battered the West Coast on the South Island have prompted some producers to dry off cows at increasing rates. Many producers are moving cattle to alternative grazing sites and feeding grain supplements to improve conditioning prior to the next season. The utilization of alternative grazing sites will occur for the next 6-8 weeks giving heavily worked paddocks time to become re-established. At the May 6 GDT event #115, average prices ranged from 2.3% lower to 6.8% 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, $4,170 +2.4%; butter, $3,892 +1.6%; buttermilk powder, $3,713 -1.2%; cheddar cheese, $4,195 -1.8%; lactose, n.a.; milk protein concentrate, n.a.; rennet casein, $11,353 +6.8%; skim milk powder, $3,873 -2.3%; and whole milk powder, $3,928 -1.7%. 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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