MADISON - Oct 23/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Australian milk production is near the seasonal peak. Milk flows going into manufacturing facilities are heavy with most plants operating at near capacity. Supplies for all dairy commodities are building. Weather forecasts for South Australia are calling for continued dry weather. Temperatures are increasing with highs approaching 30 degrees Celsius. The increased temperatures are quickly drying out those areas that do not irrigate. The dry conditions have already significantly reduced anticipated crop harvests. Dairy Australia reports increased hay price volatility as overall hay yields are being downgraded, due to the lack of rain. Dairy producers needing hay are being urged to talk to their suppliers now. Higher water costs and lower yields will continue to impact hay supplies in the major dairy producing regions. According to Dairy Australia, Australian production of various dairy commodities for July 2014 showed the following percentage changes compared to 2013: butter, -14.8%; butteroil, +38.5%; skim milk powder, -1.2%; whole milk powder, -8.8%; buttermilk powder, +17.1%; cheese, +1.6%; and whey powder, -23.1%. New Zealand milk production is nearing its seasonal peak. Weather conditions are favorable for milk production with year to date preliminary estimates showing production 5% above year ago levels. Rainfall is more than adequate and warmer temperatures are prompting good forage growth. Manufacturers are operating at or near maximum capacity in order to clear the incoming milk supply. Farmgate prices have seen some step downs with the likelihood of additional decreases in the future. At the October 15 GDT event #126, average prices ranged from 5.3% lower to 7.4% 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, $3,346 +7.4%; butter, $2,614 +3.9%; buttermilk powder, $2,685 -3.8%; cheddar cheese, $3,007 -1.0%; lactose, n.a.; rennet casein, $7,780 -5.3%; skim milk powder, $2,462 - 3.6%; sweet whey powder, $1,225 +4.3%; and whole milk powder, $2,503 +3.1%. 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
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