Oceania Dairy Market Overview

MADISON - Dec 10/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production is being affected adversely by slowly
spreading dry conditions in the most significant dairy regions. Milk
production is seasonally declining, production volumes are below year
ago levels. According to Dairy Australia, October 2015 milk production
was 1,093 billion liters, down -0.4% from October 2014. The changes
from one year earlier are: New South Wales, +1.9%, Victoria, -1.8%,
Queensland, -1.9%, South Australia, +0.3%, Western Australia, +6.2%,
Tasmania, +4.8%. Australia's milk production season to date is up 2.0%
compared to last season. According to Dairy Australia, production of
various dairy commodities for September 2015 showed the following
percentage changes compared to 2014: butter, -7.5%; butteroil, +23.8%;
skim milk powder, +10.6%; whole milk powder, -5.9%; buttermilk powder,
-17.1%; cheese, +2.0; and whey powder, -17.2%. New Zealand milk
production is behind expected levels but still at a high level. Cows
are being dried off at higher than normal rates partly reflecting
pressure from lower milk prices. Export potential for powders is more
challenging and thus, a matter of concern.  GDT SUMMARY: At the
November 17 GDT event #152, average prices ranged from -11.0% lower to
5.6% 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, $3,430 -5.9%; butter, $2,709 +5.6%;
buttermilk powder, $1,825 -1.0%; cheddar cheese, $2,874  -5.0%;
lactose, $503 -2.0%; rennet casein, $5,250 -4.4%; skim milk powder,
$1,851 -8.1%; and whole milk powder, $2,148 -11.0%.
0930C Eric.Graf@ams.usda.gov  608.557.7005
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