Oceania Dairy Market Overview

MADISON - Sep 3/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Milk production is slowing, but still up from year ago levels. Dairy
Australia is reporting July milk production was up 5.4% from a year
ago. Most of Australia has had favorable weather, with some regions
seeing drought like conditions. This, however, does not seem to be
affecting production. The historically low farm level prices have many
farmers in New Zealand culling low producing cows. Farmers do not feel
that they can sustain at current pricing levels. Production is up
slightly up year to date, but this is largely due to early calving.
Production is expected to trend back in line with last year over the
course of September. Weather has been generally cold and wet, which is
not conducive to good grass growth. At the September 1 GDT event #147,
average prices ranged from 4.0% lower to 30.0% 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, $3,029, +11.7%; butter, $2,746, +8.1%; buttermilk powder, $1,829,
+30.0%; cheddar cheese, $2,913, +4.7%; lactose, $483,-4.0%; rennet
casein, $5,779, +6.3%; skim milk powder, $1,698, +11.7%; and whole
milk powder, $2,078, +12.1%. Dairy Australia reports dairy product
exports for July 2015 totaled 52.9 thousand MT, up 8.5% from a year
ago. Selected dairy product export changes compared to the same period
last year are: butter, -21.9%; butter oil, -28.1%; cheddar, +2.4%;
SMP, +31.0%; WMP, +12.8% and whey products +9.1%. The value of exports
for July 2015 increased 8.4% over July 2014.
0930C Tara.Herbst@ams.usda.gov  608.557.7007
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal:
http://www.marketnews.usda.gov/mnp/da-home

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STAT News Service