Period: September 5 – 16, 2016
AUSTRALIA
- Weather situation: predictions are for a warm and wet spring in much of Australia.
- Milk producers: heavy rains during recent months have helped replenish reservoir levels, easing irrigation costs. Many dairy producers have been unsuccessful in efforts to associate with another processor.
NEW ZEALAND
- Weather situation: no information for this time period.
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 increased significantly. Slightly less milk being available to make butter is espected in Oceania, domestic consumption is growing in Australia, and market is moving prices closer to EU levels. Butter production in Australia during July was down 6.0% from July 2015 (source: Dairy Australia).
CHEDDAR CHEESE: prices increased. Reduced milk availability for making cheddar limited cheese production, while exports increased.
SMP: prices increased. The perception of recent lower production in Oceania and reduced SMP production in the EU is motivating buyers to step forward and secure SMP and future commitments.
WMP: prices strengthened. This is especially welcome by New Zealand farmers, since WMP significantly influences the farmgate milk pay price of a large dairy processor.
The Australian government’s loan package for farmers, previously announced, has yet to reach many dairy producers.
In New Zealand the magnitude of recent price increases has some manufacturers expecting more moderation in the near term.
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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