STAT Communications Ag Market News

Oceania Dairy Market Overview

MADISON - Jan 22/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production continues on its typical seasonal decline.  Dry
conditions were alleviated, to some degree for some dairy producers, as
significant rains covered much of the dairy region in Victoria.  The hay
market has been quiet with prices easing marginally.  Overall supplies for
the coming season are anticipated to be below normal.  Dairy commodity
supplies for some manufacturers are committed for the near term.
New Zealand's milk production is declining at an accelerated pace.  Dry
conditions over both islands are beginning to prompt discussions about
drought with some comparisons being made to the Q1 2013 decline in milk
production.  Conditions are more severe on the South Island where some
irrigation systems are being shut down, due to low river levels.  New Zealand
cooperatives have revised their seasonal forecasts with seasonal production
now estimated to be ranging from flat to 1.5% above last year's production.
Rains are forecast in the coming week, but the impact of these rains on milk
production will be marginal at best as farmgate prices remain low and are a
disincentive for producers to extend the milk production season.  At the
January 20 GDT event #132, average prices ranged from 6.4% lower to 3.8%
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, $4,286 -5.0%; butter, $3,564 +0.1%; buttermilk powder,
$2,559 -6.4%; cheddar cheese, $2,961 -4.3%; lactose, n.a.; rennet casein,
$8,159 +3.3%; skim milk powder, $2,389 +1.0%; sweet whey powder, $1,155 -
4.1%; and whole milk powder, $2,402 +3.8%.
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: http://www.marketnews.usda.gov/mnp/da-home

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