Period: March 20 – 31 , 2017
AUSTRALIA
- Milk production: in February was -10.03% below February 2016.
- Weather situation: concerns lie ahead associated with expectations of autumn being hotter and drier than desired.
- Milk producers: benefit from decreasing prices for water and good pasture conditions, that have slowed interest in purchasing hay. Cow culling rates have slowed.
NEW ZEALAND
- Milk production: in February was -2.90% below February 2016, while production in milk solids remained essentially unchanged.
MILK PRODUCTION
- Australia *: -8.39% (Jul 16 – Feb 17 vs. Jul 15 – Feb 16)
- New Zealand *: -2.65% (Jun 16 – Feb 17 vs. Jun 15 – Feb 16)
BUTTER (82%): prices moved higher. Some concerns are voiced as to the ability of New Zealand butter manufacturers to meet global demand if European butter exports pull back, so as to continue to meet internal European demand. There is still a preference by some New Zealand dairy manufacturers to marginally channel milk to whole milk powder rather than butter, even if butter availability is limited.
CHEDDAR CHEESE: prices are steady. Many buyers and sellers believe the market is in a good equilibrium.
SMP: prices weakened. Intervention stocks in the EU as well as U.S. stocks of Nonfat Dry Milk, are contributing to this being a buyers’ market. Additionally, new intervention purchases in the EU are considered to be a distinct possibility. New concerns being voiced are that U.S. milk volumes may shift even more into NDM production because U.S. cheese production, now with record stocks in cold storage, may be nearing reasonable limits of storage capacity.
WMP: prices firmed. Price strength is attributed to buyers returning to the market to secure supplies: in recent weeks with weakening prices, many buyers stepped back, relying on existing stocks as they evaluated trends.
Yili, a dairy processor from China, is now expanding a processing plant in New Zealand. The company says it’s actively working with farmers in the district to augment its milk supply to meet its growing production needs. The facility operators are said to be exploring the use of annual set milk price agreements which they hope will be more attractive to producers than current more flexible pricing.
Click here to see today’s Global Dairy Trade event (April 4, 2017) results.
CLAL.it – Butter prices in Oceania, United States and EU
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
... share
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.
Leave a Reply
You must be registered and logged in to post a comment.