MADISON - Feb 19/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Australian milk production is near the seasonal low point. Some estimates of current milk production volumes have Australia just above year ago levels. The hay market saw light trading and steady prices. A number of cooperatives updated their farmgate milk prices with most cooperatives holding steady, while a few shifted marginally lower. Cooler weather conditions across Southern Australia has extended pasture utilization and delayed forage purchases for some producers. A small but increasing number of Australian dairy companies are seizing the opportunity to export fresh pasteurized milk to China. Australia reports dairy product exports for the July-December period totaling 370.4 thousand MT, up 1.8% from a year ago. Various dairy product export changes compared to the same period last year are: butter, -21.3%; butter oil, +0.9%; cheddar, -12.7%; SMP, +33.8%; WMP, -33.1% and whey products -4.6%. The total value of exports for the July- December period was down 11.7%. The expectation of reduced dairy commodity supplies out of New Zealand is the predominate force supporting higher prices in the dairy markets this reporting period. The New Zealand government has officially declared the South Island as being in a state of drought. The official declaration opens the way for governmental assistance to those producers in the affected areas. Conditions on the North Island are not as dry, but milk production continues to decline. Dairy commodity supplies are adequate to cover current commitments, but manufacturers are keeping a close eye on production levels and stocks to prevent being over committed. December milk production as reported by DCANZ was 2.809 million MT, up 3.3% from December 2013 and 8.2% higher than the level two years ago. December milksolids reflected a 4.6% increase compared to December 2013. At the February 17 GDT event #134, average prices ranged from 1.1% higher to 16.8% 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, $4,314 +6.4%; butter, $3,823 +1.1%; buttermilk powder, $2,674 +1.9%; cheddar cheese, $3,054 +16.8%; lactose, n.a.; rennet casein, $8,897 +1.2%; skim milk powder, $2,744 +5.7%; sweet whey powder, n.a.; and whole milk powder, $3,272 +13.7%. 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: http://www.marketnews.usda.gov/mnp/da-home
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STAT News Service
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