Oceania Dairy Market Overview

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

OCEANIA OVERVIEW:
The latest milk production numbers in Australia show some steady
growth overall, varying regionally. Sources suggest September will be
similar. The dry conditions are across most states, so the next few
months are likely to see milk production decrease year to date.
Farmers are hopeful that crops will still do really well if they
receive rain soon. If not, moisture will become severely limiting for
pasture production. Quite a few acres of cereal crops are already
being mown for hay in grain growing areas, as croppers have assessed
that there is insufficient moisture to take them through to the grain
stage. This will likely push grain prices up later in the year, but
may have some small offsetting benefits in making extra hay available.
Global dairy commodity prices have increased from the recent lows.
According to Dairy Australia, August 2015 milk production was 798.1
million litres, up 3.7% from August 2014. The changes from one year
earlier are: New South Wales, +6.1%, Victoria, +3.6%, Queensland, -
0.6%, South Australia, +3.2%, Western Australia, +5.5%, Tasmania,
+1.6%. Australia's milk production season to date is up 4.5% compared
to last season.  Current New Zealand milk production is near the
seasonal peak with forecasts that milk production will be down over
last year. The lower milk production that is forecasted is aiding in
the rise of commodity pricing. The cold, wet weather is affecting
forage growth, which has contributed to the decrease in milk
production. The decrease in feed efficiency along with the low farm
levels prices have led farmers to cull more cattle. Weather has not
only affected pasture growth, but also cow comfort. At the October 6
GDT event #149, average prices ranged from 2.3% lower to 13.8% 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, $3,763, +9.9%; butter, $3,037, -2.3%;
buttermilk powder, $1,945, +13.8%; cheddar cheese, $3,234, +0.5%;
lactose, $524, +5.9%; rennet casein, $6,048, +4.0%; skim milk powder,
$2,267, +13.4%; and whole milk powder, $2,824, +12.9%. According to
Dairy Australia, production of various dairy commodities for June 2015
showed the following percentage changes compared to 2014: butter,
+20.7%; butteroil, +26.7%; skim milk powder, +21.4%; whole milk
powder, -49.1%; buttermilk powder, +14.5%; cheese, +13.5; and whey
powder, -1.7%.
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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