News Oceania n°17/2014

Period: August 4 – 15, 2014

AUSTRALIA

• Milk production: is beginning to increase.
• Weather situation: cool and wet are in the major dairy producing states.
• Milk producers: the decline in dairy commodity prices over the past number of weeks has discouraged some milk producers from executing expansion plan or taking on added financial risk.

NEW ZEALAND

• Milk production: is showing modest increases.
• Weather situation: on the North Island, and on the Western region too, has been very wet, whereas on the South Island conditions are very good with plenty of forages and mild temperatures.
• Milk producers: lower farmgate prices have restricted supplemental feeding, as it is no longer cost effective.

MILK PRODUCTION

• New Zealand *: +11,48% (Jun 14 vs. Jun 13)
• Australia *: +0,41% (Jul 13 – Jun 14 vs. Jul 12 – Jun 13)

BUTTER (82%): low prices; demand decreased; production is expected to increase as milk volumes increase and milk flows are diverted from whole milk powder to butter and SMP production; some plants in New Zealand are seeking certification to export to Russia.

CHEDDAR CHEESE: low prices; good demand; tight supplies; some cheese makers are balancing production schedules with current orders.

SMP: prices declined; global supplies are increasing in Europe, the US and also in Oceania; some buyers are seeking to block long term contracts at current levels, but manufacturers are hesitant to enter contracts extending into 2015.

WMP: weak market with low prices; slow demand waiting for increased interest from China.

Russia is currently blocking Australian dairy exports, in particular of butter and cheese, from coming into the country, whereas the ban was not extended to New Zealand.

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

CLAL.it – Russia: Monthly Imports of Butter (HS.0405)