MADISON - Mar 19/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Australian milk production has been supported by favorable weather conditions over most of the key dairying regions. Producer margins have also been fairly good and have supported milk production. Recent rains across southern Australia, especially Victoria, have improved paddocks to the point where producers are delaying their hay purchases. This situation of reduced demand has caused some hay prices to edge slightly lower. Dairy cow culling rates have increased due to high beef prices. The number of heifers available for export has declined as producers are keeping more heifers for their own herds. The Australian Bureau of Agriculture and Resource Economics projects an 8% increase in dairy export earnings for the 2015/16 season. Estimates, presented at the recently concluded ABAREs conference, were based on average seasonal conditions and global economic activity growing near 3.3%. According to Dairy Australia, production of various dairy commodities for December 2014 showed the following percentage changes compared to 2013: butter, -19.2%; butteroil, +10.5%; skim milk powder, +12.4%; whole milk powder, -26.3%; buttermilk powder, -8.2%; cheese, +19.2%; and whey powder, -26.3. Dairy Australia reports dairy product exports for the July-January period totaling 427.4 thousand MT, up 0.7% from the year ago period. Various dairy product export changes compared to the same period last year are: butter, -20.1%; butter oil, +10.2%; cheddar, -13.1%; SMP, +28.4%; WMP, -38.9% and whey products +0.7%. New Zealand's milk production is declining at an increasing rate. Some forecast estimates show full-season milk production down 1.5%-2.0% compared to the previous season. Dairy cow culling rates have increased over the past number of weeks. The pace is significantly above the previous season with some reports indicating the pace may be the highest in ten years. The North Island has received substantial rains over the past week with forecasts for more. The South Island has had some rain, but the Canterbury region has seen little and remains very dry. At the March 17 GDT event #136, average prices ranged from 15.2% lower to 5.5% 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, $3,877 -8.4%; butter, $3,555 -9.4%; buttermilk powder, $2,635 -11.6%; cheddar cheese, $3,130 -7.4%; lactose, n.a.; rennet casein, $7,507 -15.2%; skim milk powder, $2,731 -5.5%; sweet whey powder, n.a.; and whole milk powder, $2,928 - 9.6%. 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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