Oceania Dairy Market Overview

MADISON - Dec 23/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

RRESENT WITH REVISED INFORMATION
OCEANIA OVERVIEW:
This is the beginning of the summer season in Australia when many
people take vacation. This in itself leads to lower levels of market
activity. Australia just had the first real extreme weather for the year,
with the hottest December day for many years throughout Victoria and the
hottest December night on record in many parts of the state as well. Market
activity has slowed with the effect of vacations beginning. Some processors
report milk volumes received are slightly below levels at this time last
year. Pasture growth in Victoria, a substantial milk producing state,
continues to decline due to dryness. While irrigation has historically helped
maintain pasture growth, water this year is more expensive and difficult to
source. This has led to purchasing more feed, which is also more expensive
due to dry conditions. With lower milk prices this year, there has been some
selling of cows, which reduces milk production. That is also being encouraged
by higher beef prices. Some New Zealand milk producers will receive
higher pay prices in the current milk year. The New Zealand dairy herd
mid-year was just over 5 million cows, 3.3% lower than one year
earlier and the first contraction in some years. The highest number of
cows reported in recent years was 5.176 million in 2014.
1300C Eric.Graf@ams.usda.gov  608.557.7005
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal:
http://www.marketnews.usda.gov/mnp/da-home

---

STAT News Service