Oceania: SMP demand is starting to increase [News Oceania n°16/2015]

Period: July 27 – August 7, 2015

AUSTRALIA

• Milk production: is slightly above last year levels. Victoria and Tasmania are the primary export producing dairy states and accounted for 75% of Australia’s total milk production in the 2014-15 season.
• Milk producers: are looking to decrease input costs as milk prices are projected to remain low through Q2 2016. Crop production yields in Australia are expected to be stable to increasing.

NEW ZEALAND

• Milk production: the colder weather in New Zealand has slowed production, but production has started to rise slightly

MILK PRODUCTION

• Australia *: +2,60% (Jul 14-Jun 15 vs. Jul 13-Jun 14)
• New Zealand *: +8.09% (Jun 15 vs. Jun 14)

BUTTER (82%): prices are lower. Demand is uneven. Butter exports have increased also due to higher US prices.

CHEDDAR CHEESE: prices are lower. Producers are diverting milk into cheese production, away from WMP, in order to obtain the best returns. Export demand is reported as steady.

SMP: prices are lower. Some manufacturers report current pricing levels are not sustainable. Demand is starting to increase as some buyers are lacking in volumes and trying to fill for current needs, while others are contracting for future needs.

WMP: prices are lower. There is pressure for the WMP sellers to go lower as the supply chain is full. Some dairy processors report wanting to store product at current pricing levels. There has been a small decline in production.

Prices for butter, cheddar cheese, SMP and WMP in Oceania moved lower. Australian milk prices are projected to remain low through Q2 2016.

CLAL.it – Farm-gate milk prices competitiveness worldwide

CLAL.it – Butter prices in Germany, United States and Oceania

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.