Oceania Dairy Market Overview

MADISON - May 28/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production has marginally declined as weather conditions have
been detrimental to cow comfort levels.  Rain and cold weather over most of
the major dairy producing areas have also contributed to an increase in hay
prices.  Manufacturing plants are continuing to cycle through their seasonal
maintenance schedules, necessitating the need for milk to be transported to
the nearest manufacturing location available.  Dairy Australia reports that
April 2015 milk production in Australia was 2.9% above April 2014.  The state
changes from one year earlier are: New South Wales, +0.7%; Victoria, +3.1%;
Queensland, -9.9%; South Australia, +0.9%; Western Australia, +6.2%; and
Tasmania, +10.4%.  Australia's milk production season to date (July-April) is
+2.9%, compared to last season.  According to Dairy Australia, production of
various dairy commodities for March 2015 showed the following percentage
changes compared to 2014: butter, +0.5%; butteroil, +21.4%; skim  milk
powder, +5.8%; whole milk powder, -2.2%; buttermilk powder, -1.8%; cheese,
+14.4%; and whey powder, -10.6%.
Milk production for the season in New Zealand is coming to a rapid close.  A
vast majority of the dairy herd will be on winter pastures by the end of May.
Most commodity prices continue to move lower, but the rate of decline has
lessened and may indicate that prices are near their low point.  At the May
19 GDT event #140, average prices ranged from 7.1% lower to 3.2% 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,
$3,337 -4.8%; butter, $2,911 -3.2%; buttermilk powder, $1,930 +3.2%; cheddar
cheese, $2,745 -7.1%; lactose, $580 +0.9%; rennet casein, $6,067 -0.4%; skim
milk powder, $1,992 -3.6%; sweet whey powder, n.a.; and whole milk powder,
$2,390 -0.5%.
0930C rick.whipp@ams.usda.gov  608.557.7004
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home

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STAT News Service