Oceania Dairy Market Overview

MADISON - May 8/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
AUSTRALIAN milk production has benefitted from some timely and targeted rains
which brought about an autumn bump to milk volumes.  The rains have improved
pasture and crop conditions.  The good margins are also incentivizing
producers to take advantage of the situation and extend the milking season.
Australian meteorologists have issued an El Nino alert for the country,
indicating an increased probability of drought conditions in the coming
months.  The autumn bump in milk production has marginally increased
production of butter and skim milk powder.
Milk production in NEW ZEALAND is transitioning from maintaining or
maximizing current production levels, to winding down current production
operations and preparing for next season.  This transition typically occurs
this time of year.  The recent storms that caused flooding on the North
Island and battered the West Coast on the South Island have prompted some
producers to dry off cows at increasing rates.  Many producers are moving
cattle to alternative grazing sites and feeding grain supplements to improve
conditioning prior to the next season.  The utilization of alternative
grazing sites will occur for the next 6-8 weeks giving heavily worked
paddocks time to become re-established.  At the May 6 GDT event #115, average
prices ranged from 2.3% lower to 6.8% 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, $4,170 +2.4%; butter,
$3,892 +1.6%; buttermilk powder, $3,713 -1.2%; cheddar cheese, $4,195 -1.8%;
lactose, n.a.; milk protein concentrate, n.a.; rennet casein, $11,353 +6.8%;
skim milk powder, $3,873 -2.3%; and whole milk powder, $3,928 -1.7%.
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