Period: December 12 – 23, 2016
AUSTRALIA
- Weather situation: hot and dry weather in Northern Australia has helped improving hay quality and yelds, following recent weather damage.
- Milk producers: good pasture conditions reduces the need to purchase feed.
NEW ZEALAND
- Milk production: in November was -4.53% below November 2015.
- Weather situation: rainy weather during November, especially on the South island, impacted milk production.
- Milk producers: latest GDT event results are still considered adequately strong to support the projected farmgate milk prices. This would help build producer confidence in their ability to work through debt recently acquired to make it through a period of lower returns.
MILK PRODUCTION
- Australia *: -10.29% (Jul – Oct 16 vs. Jul – Oct 15)
- New Zealand *: -3.03% (Jun – Nov 16 vs. Jun – Nov 15)
BUTTER (82%): prices are steady. Lower milk supplies continue to limit butter production. Retail buyers in Australia have mostly secured needed deliveries for the holiday week. Export interest at this time is mostly contract based, rather than new spot sales.
CHEDDAR CHEESE: prices are slightly lower at the upper end of the range. Sales interest last week was at a lower level than recent weeks. Many buyers are now more focused on transactions for the first quarter of 2017.
SMP: prices are steady. Potential SMP buyers are being very cautious. EU SMP stocks and sales of intervention holdings are keeping most buyers hand to mouth as events are monitored. Manufacturers are also cautious about production volumes, so as to minimize financial exposure from holding inventory volumes.
WMP: prices are steady. WMP is a favored use of milk in the region. There has been recent slowing of export volumes from New Zealand to some customers in Africa and the Middle East, which is believed to be related to volumes of milk available. Nevertheless, previously planned offerings of WMP available at latest GDT event were increased, probably more than demand was prepared for.
The projected farmgate milk price in New Zealand should help build producer confidence in their ability to work through debt recently acquired to make it through a period of lower returns.
CLAL.it – New Zealand: farmgate milk price
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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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.
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