Oceania Dairy Market Overview
USDA - Thu Nov 09, 9:19AM CST
MD_DA120
DA
MD DA120 OCEANIA DAIRY MARKET OVERVIEW
MADISON, WI.  November 9, 2017 (REPORT 45)

AUSTRALIA:

      July-September milk production in Australia is up 1.0 percent over 
July-September last year. Breakdown by state showing monthly production 
and percent change year to date is shown in the chart below.
 
Australia Milk Production 
       August 2017
                      (Million  (% Change YTD 
                       Liters)  From 1 Year Ago) 
New South Wales          99.5     -0.1
Victoria                582.3      0.9      
Queensland               35.8     -4.1
South Australia          50.1     12.7
Western Australia        33.4     -1.9      
Tasmania                 78.0      0.7      
Australia (Total)       879.1      1.0  

Data From Dairy Australia    

	Expansion of dairy processing capacity in Australia was announced this week 
by a large dairy cooperative doing business in Australia. Current plants of the 
coop have reached full capacity. The co-operative repeated its 2017-18 season 
forecast farmgate milk price of $6.75 Australian dollars.
.



NEW ZEALAND:

      Milk production and milk solids in New Zealand for September 2017 
were both lower than September 2016. September 2017 New Zealand milk 
production was 2.5 million MT, up from 1.3 million MT in August, according 
to DCANZ. During September 2016, milk production was 2.6 million MT. 
September milk solids, 207.4 million kg, are up from 111.4 million kg in 
August. During September 2016, milk solids were 210.1 million kg.
       At the November 7 GDT event #199, all contracts prices ranged from 7.2 
percent higher to 5.5 percent lower from the prior event across categories. The 
all contracts price averages (US$ per MT) and percent changes from the previous 
averages are: anhydrous  milk fat, $6,894, +0.5 percent; butter, $5,516, -3.6 
percent; buttermilk powder, $1,931, +7.2 percent; cheddar cheese, $4,001, -2.8 
percent; lactose, n.a.; rennet casein, $5,465, -4.0 percent; skim milk powder, 
$1,818, +1.2 percent; and whole milk powder, $2,852, -5.5 percent. The continuing 
weakness in WMP, was a surprise. This being the third consecutive GDT event with 
weaker prices, concern is increasingly being heard as to whether milk pay prices 
in New Zealand will suffer. The next two auctions are considered critical in 
determining how farm milk pay prices will fare this season.


0930C eric.graf@ams.usda.gov  
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