Australia is getting ready to produce more Cheese [News Oceania n°1/2016]

Period: December 28, 2015 – January 8, 2016

AUSTRALIA

• Milk production: in October was slightly lower than in October 2014.
• Weather situation: El Niño shold be near its peak.
• Milk Producers: irrigation water remains expensive and thus, not much traded. High cull cow prices continue to induce some producers to reduce herd sizes to more easily cope with dry conditions.

NEW ZEALAND

• Milk production: in November was down 2.13% from November 2014.
• Weather situation: no information for the relevant period.

MILK PRODUCTION

• Australia *: +1.91% (Jul-Oct 15 vs. Jul-Oct 14)
• New Zealand *: -3.08% (Jun-Nov 15 vs. Jun-Nov 14)

BUTTER (82%): prices unchanged, an increase is espected for the coming months. Inventories are rebuilding after recent export of significant volumes to Asia.

CHEDDAR CHEESE: prices steady to slightly higher. This is the hot time of year in the region, which is lessening domestic demand but export potential remains good, with some customers who prefer cheese from the area.

SMP: prices unchanged, also because of the stability of EU markets: intervention there tends to keep a floor under prices. Hot and dry weather in Australia is weighing on milk needing to go to dryers.

WMP: prices weakened. WMP tends to be less profitable than other dairy commodities. Manifacturers prefer to sell rather than hold significant quantities.

Fonterra Australia will begin in 2016 the construction of a new cheese plant in Stanhope, Australia, able to produce 45,000MT of cheeses each year. Varieties will include parmesan, gouda and mozzarella.

CLAL.it – Australia: Cheese Export (monthly average)

CLAL.it – Australia: Dairy Export value share

CLAL.it – The main Cheese Exporters

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.