USDA is reporting that New Zealand will be up just 1 to 1 ½% over last year, about half the output expected earlier in the production season. Australian milk production is actually down.
Aussie October output was down 7.4% from 2008, and cumulatively, it was off 5% July through October.
With production soft in Oceania and the United States, this should bode well for international dairy prices in the coming months.
But surpluses still hang over the market. USDA also reports that Nov. 30 cold storage stocks of butter are 19% higher than a year ago. Natural American Cheese holdings are still 11% above last year, and nonfat dry milk holdings at the end of Oct total 271 million lb, or 101 million lb. more than a year ago (63%).
For the complete report in December 21-25 issue of Dairy Market news, click here.
