Oceania Dairy Market Overview

MADISON - Jun 11/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Current milk production in Australia is steady at typical low seasonal
levels.  Production approaching the end of the season has been fairly strong
and ahead of last year's pace with estimates of seasonal production 2.5%
above the previous year.  An "El Nino" has been declared by Australian
meteorology officials, which typically results in warm dry conditions
covering Oceania, Southeast Asia, China and India.  Manufacturing milk
volumes in Australia have declined as much of the milk currently produced is
filling domestic fluid demand.  Some manufacturing milk loads are being
transported longer distances as various manufacturing facilities are closed,
while they cycle through their yearly maintenance schedules.  Hay markets are
active as Australian producers are looking to secure adequate supplies as
winter sets in.  The possibility of dry conditions, due to the increased
possibility of El Nino delaying or limiting the 2015 hay harvest, has caused
dairy producers to reassess their forage supplies.
Dairy Australia reports dairy product exports for the July-April period
totaling 624.4 thousand MT, up 2.4% from the year ago period. Selected dairy
product export changes compared to the same period last year are: butter, -
23.4%; butter oil, -5.1%; cheddar, -13.2%; SMP, +31.9%; WMP, -32.9% and whey
products +2.5%.
Milk production in New Zealand is at very low levels as most cows have been
dried off and moved to winter pastures.  Dairy commodity supplies are more
than adequate to cover the carry-over period.  Inventories for some
commodities are more than anticipated for this time of year.  Larger than
anticipated supplies are having difficulty clearing as global demand remains
sluggish with buyers feeling no urgency to make purchases in a weak market.
A major cooperative in New Zealand is reviewing its business operations and
will likely make changes to improve efficiencies and lower costs.
New Zealand's April milk production, as reported by DCANZ, was 1.396 million
MT, up 8.5% from April 2014 and 44.1% higher from two years ago. April milk
solids reflect a 9.2% increase compared with April 2014.
At the June 2 GDT event #141, average prices ranged from 10.0% lower to
unchanged 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, $3,112 -7.4%; butter, $2,619 -10.0%; buttermilk powder,
$1,795 -7.0%; cheddar cheese, $3,055 unchanged; lactose, $540 -6.9%; rennet
casein, $5,789 -4.4%; skim milk powder, $1,982 -1.3%; sweet whey powder,
n.a.; and whole milk powder, $2,309 -3.1%.
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