News Oceania n°22/2014

Period: October 13 – 24, 2014

AUSTRALIA

• Milk production: near the seasonal peak.
• Weather forecasts: are calling for continued dry weather in South Australia.
• Milk producers: higher water costs and lower yields will continue to impact hay supplies in the major dairy producing regions.

NEW ZEALAND

• Milk production: is nearing its seasonal peak.
• Weather situation: is favorable for milk production.
• Milk producers: farmgate prices have seen some step downs with the likelihood of additional decreases in the future.

MILK PRODUCTION

• New Zealand *: +5,13% (Jun-Aug 14 vs. Jun-Aug 13)
• Australia *: +2,82%  (Jul-Sep 14 vs. Jul-Sep 13)

BUTTER (82%): prices increased on the low end of the range; the strong production is adding to inventories; export demand has been active with some product moving to the U.S., North Africa and the Middle East.

CHEDDAR CHEESE: prices declined on the upper end of the range; current prices are showing a better return for cheese than whole milk powder, but cheese makers are hesitant to greatly expand inventories, due to the available global supplies.

SMP: prices at the low end of the range declined; demand is active; increased trading with the more price sensitive nations of Africa.

WMP: prices saw some marginal increases; the increases are thought to be due, in part, to increased trading following a national holiday in China and a response to some cooperatives lowering their yearly WMP production forecasts.

Most manufacturing plants are operating at or near capacity to handle the seasonal peak in milk volumes. This results in a strong production of Butter, AMF, Cheddar, SMP and WMP.

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 – Oceania: SMP and Butter prices