Oceania Dairy Market Overview

MADISON - Apr 1/10 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:

      The Oceania milk production season continues to wind down
at varying rates.  In New Zealand, especially on the North
Island, milk production has dropped sharply over the past few
weeks and milk producers and handlers are not anticipating
recovery to occur.  Lack of moisture during the fall is the
major factor contributing to the sharp decline.  Milk output
is dropping so quickly that some farmers are reducing their
milkings to one per day with some deciding to dry off their
herds earlier than projected.  This is bringing a quick end to
the production season on the North Island.  On the South
Island, total milk output is not as heavy as on the North
Island, but milk volumes continue to run ahead of projections.
With these recent trends, milk production estimates for the
year in New Zealand are again being adjusted to be more in the
flat to a 1% increase level over last season.  New Zealand
milk handlers and manufacturers are very concerned about end
of season commitments.  Current milk volumes are being
directed toward whole milk powder production when possible.
Some caseinate production continues to occur at remote
locations, but for the most part, the casein production season
is over.  In Australia, the milk production season is trending
lower, but February production data indicates that, as hoped,
late season production might realize some recovery.  During
the month, milk volumes continued to trail last February by
3.8%, bring the year to date figure (eight months) to down
6.4%.  This is the first month in many that previous year
comparables were not nearing -10%.  In recent weeks, commodity
prices for most all manufactured dairy products have
increased.  Traders and handlers are stating that the market
is firm and that supply, or lack of supply, will be that major
factor in market conditions and pricing for the foreseeable
future.  Oceania traders, along with other international
traders are very curious about the outcome of the upcoming
global/Dairy Trading activity that will occur early next week.
Most all are projecting firmer prices, but how firm is their
question.  Traders are stating that with the New Zealand milk
production season ending sooner that projected, slow milk
output development in Europe, and an international market that
needs dairy products, supply availability will be a major
factor and this trading event might start to show how
aggressive buyers might be to secure stock, especially in
future shipment periods.


1100c steve schneeberger (608)250-3204

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STAT News Service

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