STAT Communications Ag Market News

Oceania Dairy Market Overview

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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