Milk Powders prices on the rise [News Oceania n°23/2019]

Period: November 25 – December 6, 2019

Australia-5,5% milk production October 2019 y-o-y

Milk production in Australia during October was 5.5% below October last year. The current season milk production through October is 5.8% lower than July-October 2018.

The fires burning in Australia for weeks continue to be a big problem, and great anxiety is present.

In New Zealand, recent weather conditions are reported as decent. Forage quality is good for dairy producers. A key variable to be followed at this time is the pace of the decline in milk production from the seasonal peak.

Dairy Commodities Prices

Oceania Butter prices are lower, as butter production is close to seasonal high levels. Even if milk production has begun to decline, Butter remains available since many buyers are already covered.

Australian butter demand is steady. New Zealand Butter export is good, and stocks seem able to meet demand.

Skimmed Milk Powder (SMP) production is higher in Oceania, as demand for SMP remains firm.

Cheddar prices are stronger also thanks to an active competition among buyers. Cheese production is mostly steady as some manufacturers are keeping milk in cheese plants as a priority.

Whole Milk Powder (WMP) prices in Oceania are steady to higher. WMP production is contracting because of the lowering milk production. There is good demand for utilization in nutritional and reconstituted beverage markets for developing countries. - Price of SMP in Oceania – Price of SMP in Oceania

- 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

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The 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.

Posted in News Oceania EN, Oceania_