April 16, 2005

Australia, New Zealand milk output down, Europe positive

Reports have indicated that New Zealand's milk output this season is running 4-5 percent behind last year's because of harsh weather conditions.

Australia's output is down 0.9 percent from last year, which decrease as much as 9.9 percent in Queensland and 5.4 percent in New South Wales. Victoria and Tasmania however increased output by 1.0 percent and 1.7 percent respectively.

In Europe, milk production is having a positive start despite being plagued by un-conducive weather conditions because of plentiful stock of leftover winter feed. Although some potential buyers are holding off till the production situation improves, current sales seem enough to clear surplus volumes.

Since March 1 and through April 12, 1,570 tonnes of skim milk powder have been offered to intervention, compared with 2,456 tonnes a year ago. During the first six weeks of the season, butter offerings totalled 14,622 tonnes versus 14,466 tonnes last year.

Traders and handlers in Eastern Europe report slow sales, but with potential buyers gradually returning.