Oceania Dairy Market Overview

MADISON - Jun 19/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production showed indications of a strong May, as some
cooperatives have posted nearly a 13% increase over last year.  Victoria and
Tasmania, Australia's major dairy exporting states, have benefitted from good
autumn pasture growth stemming from timely rains and mild temperatures.
Australian climate models continue to indicate an El Nino weather pattern
will likely occur in August, bringing dryer than normal conditions over the
southern and eastern inland areas.  All farmers in those regions are being
encouraged to have contingency plans to deal with the possibility of
prolonged dry periods.  According to Dairy Australia, Australian production
of various dairy commodities for April 2014 showed the following percentage
changes compared to 2013: butter, +0.9%; butteroil, -44.3%; skim milk powder,
-29.5%; whole milk powder, +29.5%; buttermilk powder, +5.4%; cheese, +3.9%;
and whey powder, -20.1%.  Dairy Australia also reports dairy product exports
for the July-April period totaling 610.0 thousand tons, down 8.1% from the
year ago period. The largest export category is skim milk powders (SMP). The
total value of exports is 19.8% higher over the prior year period. The
highest value items are SMP and WMP.
Normal autumn weather conditions across most of New Zealand during May
replenished soil moistures over most of the country with only the most
northern areas of the North Island having dryer than normal conditions.  New
Zealand's milk production is estimated to increase 2.3% in the 2014/15 milk
season, which began on June 1, as estimated by the Ministry for Primary
Industries.  A large cooperative reported May milk collections up 24%, with
the North Island 40% above year ago drought affected levels, and the South
Island up 14%.  The cooperative reported collections for the full 2013/14
season at 8.3% more than last year, with the North Island showing an 8.9%
gain over last year and the South Island registered a 7.3% increase.  The
cooperative also announced their initial farmgate milk price for the 2014/15
season to be $7.00NZD/kg milk solids.  At the June 17 GDT event #118, average
prices ranged from 3.8% lower to 17.0% higher from the prior event across
categories. The all contracts price averages (US$ per MT) and percent changes
from the previous average are:  anhydrous milk fat, $3,898 -3.8%; butter,
$3,699 +1.8%; buttermilk powder, $4,535 +17.0%; cheddar cheese, $4,381 +2.4%;
lactose, n.a.; milk protein concentrate, n.a.; rennet casein, $11,155 +4.6%;
skim milk powder, $3,855 -0.2%; and whole milk powder, $3,658 +2.4%.
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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