STAT Communications Ag Market News

Oceania Dairy Market Overview

MADISON - Mar 5/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production is holding fairly steady compared to recent weeks.
Many producers continue to utilize summer forages and provide supplemental feeds
rather than hay.  A strong cyclone made landfall in Queensland last week and
triggered numerous thunderstorms and showers over most of the major dairy
producing regions.  Commodity prices have moved significantly higher in recent
weeks and as a result some commodities are experiencing some fluctuations in
demand.  Increased prices have also narrowed the margins between commodities,
prompting some manufacturers alter production schedules.  According to Dairy
Australia, January 2015 milk production in Australia was 0.6% above January 2014.
The state changes from a year earlier are: New South Wales, +7.6%; Victoria, -
1.5%; Queensland, -2.8%; South Australia, +2.5%; Western Australia, +6.5% and
Tasmania +5.5%. Australia's milk production season to date (July-January) is
+2.4%, compared to last season.
New Zealand's milk production continues to decline.  The rate of decline has
accelerated significantly and will lead to a shorter season, compared to last
year.  Producers have increased their cull rates and are moving to once a day
milking schedules.  The Canterbury region on the South Island continues to be very
dry.  As commodity prices have increased in recent weeks, manufacturers have
adopted flexible production schedules for the various commodities in order to
capture the best returns.  January milk production as reported by DCANZ was 2.481
million MT, up 0.3% from January 2014 and 7.8% higher than the level two years
ago.  January milksolids reflected a 1.3% decrease compared to January 2014.  At
the March 3 GDT event #135, average prices ranged from 2.2% lower to 10.8% 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, $4,237
-2.2%; butter, $3,912 +2.5%; buttermilk powder, $2,681 +6.8%; cheddar cheese,
$3,377 +10.8%; lactose, n.a.; rennet casein, $8,694 -0.7%; skim milk powder,
$2,935 +5.9%; sweet whey powder, n.a.; and whole milk powder, $3,241 -1.0%.
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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