Oceania Dairy Market Overview

MADISON - Sep 17/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australia has been fairly dry lately after a cool, dry winter. Farmers
are hoping for favorable conditions as spring approaches. With the low
farm level prices, farmers are in need of optimal grass growth, but
the cold wet spring seems to have put a damper on this. Production is
up from year ago levels. Even with the low prices, output does not
seem to be slowing down. New Zealand's milk output forecast is lower,
which is pushing up the market for dairy commodities. Some sources
suggest production is slowing as weather has affected cow comfort. Cow
culling is increasing but has not affected production rates. Early
calving seems to be aiding in this. At the September 15 GDT event
#148, average prices ranged from 1.9% lower to 20.6% 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, $3,440, +13.7%; butter, $3,108, +13.3%; buttermilk powder,
$1,719, -1.9%; cheddar cheese, $3,206, +10.7%; lactose, $499, +3.1%;
rennet casein, $5,807, +0.6%; skim milk powder, $1,992, +17.0%; and
whole milk powder, $2,495, +20.6%. New Zealand's July milk production,
as reported by DCANZ, was 222 thousand MT, up 13.8% from July 2014.
July milk solids reflect a 13.2% increase compared with July 2014.
Dairy Australia reports July 2015 milk production in Australia was
5.4% above July 2014. The state changes from a year earlier are: New
South Wales, +3.9%; Victoria, +6.2%; Queensland, -2.0%; South
Australia, +7.5%; Western Australia, +10.1% and Tasmania, +0.6%.
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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STAT News Service