Fonterra will hold its projected milk pay price [News Oceania n°16/2016]

Period: July 25 – August 5, 2016

AUSTRALIA

• Milk production: during June was -8.8% below June 2015. Season 2015-2016 ended with a total production below previous season by -1.98% (June data are provisional).
• Weather situation: northern Australia is experiencing good rainfall and crop growth. Lessening of drought conditions also in Tasmania.

NEW ZEALAND

• Milk production: with better weather conditions, hopes are increasing for production improvements.
• Weather situation: cooler weather and rain.
• Milk producers: Fonterra, a leading dairy cooperative in New Zealand, recently announced that for the present, it will hold its previously projected milk pay price. This is welcome to dairy producers.

MILK PRODUCTION

• Australia *: -1.98% (Jul 15 – Jun 16 vs. Jul 14 – Jan 15, June data are provisional)
• New Zealand *: unchanged (Jun 16 vs. Jun 15)

BUTTER (82%): prices firmed slightly at the bottom of the range. Most manufacturers have low sales activity at this point in the year.

CHEDDAR CHEESE: prices firmed. Manufacturers feel comfortable with buying interest and profitability of cheddar manufacturing.

SMP: prices unchanged. There was little activity to move prices and few spot transactions. SMP production in New Zealand is focused on supplying long term customers and manufacturing operations of New Zealand cooperative owned enterprises.

WMP: prices firmed. The prevailing higher price levels in the EU are referred to as a factor helping to strengthen WMP prices in Oceania. WMP remains a significant dairy product focus of manufacturers and many customers have long buying relationships and affinities for their sources.

Fonterra recently announced that it will hold its previously projected milk pay price: 4.25 NZD per kilogram of milksolids, with a total payout in the 2016/17 season from 4.75 NZD to 4.85 NZD per KgMS (about 23.26 to 23.75 €/100 kg at current change, for milk 4.2% fat and 3.4% protein).

CLAL.it – Farmgate Milk Price in New Zealand (Fonterra)

CLAL.it – Farmgate Milk Price in New Zealand, United States and Germany

Note: · Assessments about market trend are expressed in US$; · * Dairy season: July, 1st – June, 30th (Australia), June, 1st – May, 31st (New Zealand).

Source: USDA summarized by the CLAL Team

More informations about milk production in New Zealand and Australia are available on CLAL.it

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About CLAL Team

The CLAL.it team is composed of young people who with the help of Computer Science study the dairy market and develop tools to provide the Operators of the dairy sector with a comprehensive real-time view of the national and international market trends.