December 24, 2004

Slow Dairy Market Activities Expected in Australia, New Zealand during Holiday Season

Oceania milk production is edging lower, although the decline is not significant at this time.  Milk producers and handlers in both Australia and New Zealand are hopeful that the second half of the production season will be more positive than the first half. 

Production reports continue to indicate that milk output in New Zealand during the first half of the year trailed last season with output in Australia also slightly lower.  Stocks of manufactured dairy products are in very close balance with demand.  In most instances, suppliers indicate that they do not have any product available for additional or spot buyer interest. 

International buyers continue to look to Oceania for needs. But they discover that their inquiries are unfulfilled if they are not regular or current customers.  Shipments will continue to regular customers during the upcoming year-end holiday period, but the holidays will slow overall trading and sales activity.  Traders and handlers are not looking for any significant market activity for the next two to three weeks.  At this point, prices remain firm and supplies are tight.