MADISON - Oct 29/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Australia prices for dairy products continue to firm on average and the first farm gate level price increase was recorded. The TPP agreement was concluded and will make it easier to access markets that have been restricted. Milk production is expected to increase in 2016 as weather conditions continue to improve. Farmers are expected to keep herds at current levels. Currently most exporters desire business from China. According to Dairy Australia, September 2015 milk production was 970.1 million litres, up 0.8% from September 2014. The changes from one year earlier are: New South Wales, +3.2%, Victoria, - 0.2%, Queensland, -2.8%, South Australia, +2.9%, Western Australia, +5.9%, Tasmania, +3.9%. Australia's milk production season to date is up 3.1% compared to last season. According to Dairy Australia, production of various dairy commodities for August 2015 showed the following percentage changes compared to 2014: butter, +7.5%; butteroil, +31.1%; skim milk powder, +22.8%; whole milk powder, - 22.5%; buttermilk powder, +27.9%; cheese, +7.6; and whey powder, - 9.9%. New Zealand milk production is forecasted to be 5 to 10% down from last year. The lower prices are having an effect on farmers financially and on herd sizes. Milk supply is forecasted to continue to drop by the end of the year and the decrease is likely to continue into 2016. Dairy products production and exporting are also likely to dwindle. New Zealand's September milk production, as reported by DCANZ, was 2.545 million MT, down 7.5% from September 2014. September milk solids also reflect a 7.2% decrease compared with September 2014. At the October 20 GDT event #150, average prices ranged from 11.1% 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, $3,856, +2.4%; butter, $2,850, -11.1%; buttermilk powder, $2,064, +3.2%; cheddar cheese, $3,163, -2.2%; lactose, $507, -3.8%; rennet casein, $6,478, +2.1%; skim milk powder, $2,178, -4.5%; and whole milk powder, $2,694, -4.6%. 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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