Oceania Dairy Market Overview

MADISON - Jul 31/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production is about steady with recent weeks' levels.  Most
manufacturers have cycled through their seasonal shut downs, have completed
maintenance projects, and are prepared for the new season and the eventual
increasing milk supply.  Dairy product stocks are being worked lower and
there is cautious optimism among dairy producers regarding the new milk
production season.  Market activity for most dairy product markets is fairly
light, but market interest is building.  According to Dairy Australia, June
2014 milk production in Australia was 8.9% above June 2013. The state changes
from a year earlier are: New South Wales, +2.8%; Victoria, +11.9%;
Queensland, -4.5%; South Australia, +5.3%; Western Australia, -2.2% and
Tasmania +15.5%. Australia's milk production for the 2013-14 season was
+0.4%, compared to the previous season.  Victoria and Tasmania are the
primary export producing dairy states and accounted for 75% of Australia's
total milk production in the 2013-14 season.
 New Zealand's mild winter weather continues and is benefitting dairy
operations and prompting good grass growth on pastures.  Most dairy cows
remain on winter pastures and current milk production is near the seasonal
low point. Most cows will start calving in the latter half of August and milk
production will begin to increase.  Dairy farmers have been cautioned by some
cooperatives that milk pricing forecasts have been cut, due to the decline in
dairy product prices and decreased demand from China.  The lower price
forecasts will decrease producer margins and tighten cash flows for dairy
operations.  May milk production as reported by DCANZ was 0.72 million tons,
up 24% from May 2013, but 10% lower than two years ago.  The GDT auction has
taken its second semi-annual three week break and will occur again on August
5.
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