WMP and SMP exports up for New Zealand and Australia [News Oceania n°12/2018]

Period: May 28 – June 8, 2018

This is the time of year with seasonally lower milk production in Australia. It offers an opportunity for easier plant maintenance and repairs without interfering with milk flows.

Winter is setting in and substantial rain has recently fallen in Australia. While the rainfall is welcome in bringing moisture to dry soil, the persistent rain is now leading concerns about mold in stored hay. Demand for hay is strong and may outstrip supply in coming months.

New Zealand has begun a process of killing cow herds with cows affected by mycoplasma bovis. In some localized areas the impact will be sustained, however in the larger macro scheme of New Zealand milk production, the impact will be marginal.

The production of dairy commodities is limited.

WMP market is quite steady and calm. Most Buyers are covered by previous purchases or contracts with manufacturers.

SMP prices in Oceania are higher, reflecting some purchasers with immediate needs or purchasers being cautious about securing SMP for anticipated need.

Butter prices are weaker. Traded volumes and production are very low, with some plants down for scheduled maintenance planned during this seasonal low milk production period.

Recent Cheddar price strength has led some Buyers to pull back, and now Oceania Cheddar prices are weaker.

In the first quarter of 2018, WMP and SMP exports increased significantly for both New Zealand and Australia. There was a slowdown in the export of Cheese and Milk Cream. Butter export recorded an increase in New Zealand, but a decline in Australia.