Oceania Dairy Market Overview

MADISON - Feb 27/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
AUSTRALIAN milk production has suffered from recent heat waves and limited
bounce backs in production.  Dairy Australia is forecasting milk production
for the 2013/14 season to be flat to 2% lower, compared to last season.
Recent rains and cooler temperatures have improved cow comfort levels in some
areas.  Prompted by adequate water supplies, lower feed costs, higher milk
prices, and having most of the hot weather behind them, many dairy producers
are looking to prolong milk production this season.  Victoria's milk
production continues to hang on, benefitting from irrigated pastures and
supplemental feeding.  A majority of dairy product supplies are committed for
Q1 and Q2 and global demand remains active with most markets seen as stable.
NEW ZEALAND milk production in December was reported by DCANZ at 2.72 million
tons, up 4.7% from December 2012 and 11.8% higher than two years ago.  Some
production areas on both the North and South Islands are currently dry and
needing rain to promote pasture growth.   Strong global demand and good
margins are continuing to prompt producers to provide supplemental forage
feeding to extend the milk production season.  Manufacturers are building
supplies to fill future commitments over the carry over period.  Butteroil
demand has improved following recent price declines.
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