Oceania Dairy Market Overview

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

OCEANIA OVERVIEW:
Australian milk production is beginning to increase with more cows coming on
line.  Weather conditions are cool and wet in the major dairy producing
states and, as a whole, the current winter is viewed as average.  Pastures
could use some warmer temperatures and sunshine to promote increased growth.
Manufacturing plants have cycled through their maintenance shutdown periods
and are ready for increased milk volumes.  Producers will receive their final
payments for the 2013-14 season on August 15.  Most producers have signed new
contracts, but a few may make a change after the final payments are received.
The decline in dairy commodity prices over the past number of weeks has
discouraged some milk producers from executing expansion plans or taking on
added financial risk.  According to Dairy Australia, Australian production of
various dairy commodities for June 2014 showed the following percentage
changes compared to 2013: butter, -6.9%; butteroil, -34.1%; skim milk powder,
-9.5%; whole milk powder, +56.2%; buttermilk powder, -6.7%; cheese, +3.0%;
and whey powder, -29.5%.  The 2013/14, July through June season totals showed
the following percentage changes compared to 2012/13: butter, +1.2%;
butteroil, -24.9%; skim milk powder, -5.8%; whole milk powder, +16.1%;
buttermilk powder, +5.9%; cheese, -8.4%; and whey powder, -12.5%.  Dairy
Australia also reports dairy product exports for the July-June period
totaling 740.6 thousand tons, down 7.3% from the year ago period. The largest
export category is skim milk powders (SMP). The total value of exports is
16.7% higher over the prior year period.
New Zealand's milk production is showing modest increases as cows are calving
and coming on line.  Weather conditions on the North Island have been very
wet and may hamper grazing pastures if they're not allowed to dry off
sufficiently.  Conditions on the South Island are very good, especially in
the Cantebury region, where forages are plentiful and temperatures have been
seasonably mild.  The Western region, like areas of the North Island, has
received numerous rains and needs some dry weather.  Lower farmgate prices
for producers have restricted supplemental feeding, as it is no longer cost
effective.  Milk production is expected to make sizable increases week to
week leading up to the seasonal peak, which usually occurs in October.
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