August 2, 2008

 

Dairies in Australia and New Zealand optimistic as new season dawns 

 

 

Production increases will be apparent in New Zealand before increases in Australia occur, according to a USDA review of dairy conditions in both countries.

 

Milk producers and handlers in both countries report that weather conditions, especially moisture, are the major factors that will determine how the milk production season develops. 

 

Usually, the winter months provide sufficient volumes of moisture to replenish depleted volumes.

 

In New Zealand, producers and handlers indicate that they have received good volumes of moisture during the past month and now they are hoping for sunshine which would provide for positive pasture growth.  With the moisture that has fallen in New Zealand, producers are hopeful that the drought of last season is behind

them. 

 

Herd conditioning is fairly positive, although some producers indicate that their herds have been in better shape in previous years.

 

In Australia, water levels are lower than desired although they are slightly more than last year at this time.

 

Australians report that August is typically a wet month, thus they are hopeful that this year will be as expected.  Last year, water rationing and restrictions were imposed in the Southeastern region of Australia the major dairy producing region of the country.

 

Many producers and handlers are once again questioning if this situation will redevelop this year. Although lack of moisture is a concern for many, positive milk prices are giving producers an optimistic outlook on the upcoming season, the USDA report noted.

 

If pastures perform under par, producers have sufficient funds from higher sale prices last year to purchase additional supplemental feed stocks, the report said.

 

Prices are adjusting slightly to clear out end of year stocks and prepare for the upcoming new season. 

 

Some suppliers and traders indicate that they are seeing domestic sales slow at the

retail level as consumers tighten their purse strings when it comes to dairy purchases, especially cheese. 

 

However, some suppliers say that the smaller packaging sizes could have accounted for the recent reductions.