MADISON - Jul 17/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Australian milk production was flat over the last fortnight with levels at or near the seasonal low point. The mild weather has given way to more normal winter conditions with cold and rains covering much of the dairy producing areas. Most dairy farmers have signed on for the new season with their milk processor of choice. Beginning season milk prices are above levels of years past and producers are readying for a good start to the new season. Cows will begin calving over the next 4 weeks. Export spot sales activity has been fairly light for most dairy commodities. Manufacturing plants continue to cycle through their typical shut downs for planned maintenance projects. Stocks are being worked lower with supplies moving through contracts. Trading is light with reports that China has mostly adequate supplies for the near term and Ramadan has lowered export interest from the Middle East. According to Dairy Australia, Australian production of various dairy commodities for May 2014 showed the following percentage changes compared to 2013: butter, +13.7%; butteroil, -13.2%; skim milk powder, +8.1%; whole milk powder, -11.9%; buttermilk powder, +15.7%; cheese, +1.9%; and whey powder, - 7.4%. Dairy Australia also reports dairy product exports for the July-May period totaling 667.4 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 18.1% higher over the prior year period. The highest value items are SMP and WMP. New Zealand's milk producers are waiting for the start of the new season. Current milk production is limited, as a majority of cows are dried off and on winter pastures. Weather remains mild on the South Island, but the North Island has seen heavy rains and colder temperatures. Some flooding did occur in areas north of Auckland, but the impact to dairy operations is said to be minimal. Calving has started in some areas on the North Island. Stocks of dairy commodities are being worked lower, with uncommitted supplies of whole milk powder readily available for the spot market. Going into the new season, some manufacturers are adjusting their production schedules away from whole milk powder to butter and skim milk powder production. New Zealand's 2013-14 export revenue increased by 30% according to a report released by the Ministry of Primary Industries. At the July 15 GDT event #120, average prices ranged from 10.9% lower to 1.1% lower 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, $3,250 -10.0%; butter, $3,144 -1.1%; buttermilk powder, $4,426 -4.6%; cheddar cheese, $4,164 -1.6%; lactose, n.a.; milk protein concentrate, n.a.; rennet casein, $9,761 -8.9%; skim milk powder, $3,516 -7.1%; and whole milk powder, $3,088 -10.9%. 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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