MADISON - May 14/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Australian milk production in recent weeks has seen a marginal increase as autumn calving has added cows to the milking herd. Production is expected to trend a bit lower, in the coming week, as the first significant cold spell has covered most of the major dairy producing regions. Various manufacturing plants are cycling through their planned maintenance schedules, and as a result, milk flows are going to the closest operating plant. Demand is flat as many buyers have covered their near term needs over the past number of weeks. Hay trading has increased with the onset of cooler weather and as the irrigation season draws to a close. Some hay sellers have all but exhausted their stocks, but overall, supplies have been adequate to meet demand. Dairy Australia reports dairy product exports for the July-March period totaling 565.7 thousand MT, up 2.2% from the year ago period. Selected dairy product export changes compared to the same period last year are: butter, -23.0%; butter oil, +0.1%; cheddar, -13.3%; SMP, +29.4%; WMP, -34.3% and whey products +4.0%. Milk production in New Zealand continues to decline as it moves towards the seasonal low point. Some cooperatives have again reduced their farmgate prices, which will likely hasten producers to dry off cows and move them to winter pastures. Favorable weather conditions late in the season prompted some cooperatives to upgrade their yearly milk production forecasts. Current estimates are calling for a 1.5% increase over last season. New Zealand's March milk production, as reported by DCANZ, was 1.749 million MT, down 0.9% from March 2014, but 21.0% higher from two years ago. March milk solids reflect a 1.1% increase compared with March 2014. At the May 5 GDT event #139, average prices ranged from 14.0% lower to 9.1% 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, $3,505 - 6.3%; butter, $3,005 -0.8%; buttermilk powder, $1,748 -14.0%; cheddar cheese, $3,012 +9.1%; lactose, n.a., rennet casein, $6,094 -11.0%; skim milk powder, $2,048 -7.5%; sweet whey powder, n.a.; and whole milk powder, $2,386 -1.8%. According to GTIS, China's imports of dairy products for the January - March period for selected dairy products saw the following percentage changes compared to the same period last year; WMP, -50%; SMP, -30%; whey, -10%, cheese, -4%; butter, -35% and AMF, -67%. 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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STAT News Service
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