Oceania Dairy Market Overview

MADISON - Feb 13/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  AUSTRALIAN milk production continues to be suppressed by
bouts of extreme heat and dry weather.  The breaks between the various heat
waves have offered some bounce back in production, but the continuing cycle
of heat has accelerated production declines.  Numerous wild fires have
periodically interfered with some milk shipments, due to intense smoke
limiting visibility and closing highways.  Milk production is hanging on in
northern Victoria where irrigation systems are maintaining pastures and also
due to supplemental feeding to help extend the production season.  Those
areas without irrigation have very limited or no pastures for cattle.
According to Dairy Australia, December milk production in Australia was 1.4%
above December 2012.  The state changes from a year earlier are:  New South
Wales, -1.6%; Victoria, +2.3%; Queensland, -2.4%; South Australia, -3.6%;
Western Australia, -3.7% and Tasmania +5.2%.  Australia's milk production
season to date is -3.0%, compared to last season.  Dairy Australia has also
summarized exports for the July-December period, showing total export tonnage
down 11.8%.  The decline in tonnage was offset by a rise in total value with
an increase of 15.8%.  Milk powder demand remains good and continues to be
the dominate factor in the dairy markets.
NEW ZEALAND milk production continues to be well above year ago levels.
Weather conditions have been supportive of milk production, especially on the
South Island.  The North Island is dry in some areas, which is not unusual
for this time of year.  Some producers have implemented supplemental forage
feeding in order to maximize their late season production.  Overall, the
production season looks to end strong for most producers.  The gains in late
season production, over last year, are allowing manufacturers to more
confidently manage and build stocks for the upcoming carryover period.
Global demand for milk powders remains strong.  China's trading activity is
slowly coming back following the New Year's holiday.  Butteroil and milk
powder prices have reached levels, where some prospective buyers are
considering alternative products.
0930C rick.whipp@ams.usda.gov 608.278.4151
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: www.marketnews.usda.gov/portal/da

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STAT News Service