Oceania Dairy Market Overview

MADISON - Apr 30/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
*Corrected Australian whey and WMP percentages
Australian milk production is showing some increases, due to
favorable weather conditions.  Trading activity for most dairy
commodities has slowed, but a few companies are looking for Q3 &
Q4 offers.  Demand for dairy commodities has declined as many
buyers have recently made purchases and have their near term
needs covered.  There is a building consensus among dairy
analysts that dairy commodity markets are at or near the low
point, but it will take a considerable amount of time for prices
to substantially recover.  Dairy Australia reports that March
2015 milk production in Australia was 4.9% above March 2014.
The state changes from one year earlier are: New South Wales,
+2.6%; Victoria, +5.8%; Queensland, -6.2%; South Australia,
+1.9%; Western Australia, +4.8%; and Tasmania, +9.6%.  According
to Dairy Australia, production of various dairy commodities for
February 2015 showed the following percentage changes compared
to 2014: butter, +9.3%; butteroil, +2.9%; skim  milk powder,
+30.0%; whole milk powder, -40.0%*; buttermilk powder, -8.3%;
cheese, +17.9%; and whey powder, +28.0%*.  Dairy Australia's
release of total milk sales data, showed February milk sales
increasing 0.5% compared to year ago levels.  Year to date data
showed full cream milk increasing by 3.3% and UHT increasing by
2.8% compared to the same period last year.  Over the past year,
there have been increasing efforts by some manufacturers to
expand their production of UHT to fill China's increasing demand
for fluid milk.
Beneficial rains have covered major portions of New Zealand over
the past few weeks.  Milk production continues to decline in New
Zealand, but the close of the season will not be as quick as
once thought as the recent rains have prompted some producers to
extend the milking season a bit longer.  Soil moisture levels
have improved, but remain below the historical average in some
areas, especially on the South Island.  Dairy commodity prices
are showing little movement this period. Major dairy
associations in New Zealand, Australia and the United States are
calling for a timely and successful conclusion to the TPP trade
talks.  It is hoped the negotiations will result in reduced
trade restrictions and enhanced nutritional security.  The GDT
auction schedule is in the midst of a three week break with the
next event scheduled for May 5.
0930C rick.whipp@ams.usda.gov  608.557.7004
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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