Favorable weather for milk production in Oceania and South America [The Austral - August 2021]

The Austral news offers the latest information on the dairy market in Oceania and South America.

Oceania: active interest from Northern Asian and African Butter buyers

New Zealand+4.5% milk production
Jun-Jul 21 y-o-y

In New Zealand, milk production in July 2021 recorded +6.6% compared to July 2020. So far, the weather has been favorable for pasture growth and cow comfort. Farmers in Australia also have relatively good weather, reasonable input costs,  and favorable opening milk prices.

New Zealand company Happy Cow Milk has built a platform that enables dairy farmers to supply ethical and sustainable milk to their local community, with the aim of reducing carbon emissions and plastic waste. This business has reached its $500,000 crowdfunding target.

In June 2021, WMP exports to New Zealand and Australia increased significantly, particularly in Southeast Asia.

For New Zealand, the positive trend in Cheese exports is confirmed, which closes the first half of 2021 with 197,854 tons (+19.8% compared to the first half of 2020), mainly destined for China and other Asian countries.

As Delta variant COVID cases increase, New Zealand has reached its highest level of alert and outbreaks across Southeast Asia are creating other regional lockdowns. These new outbreaks and health safety measures may impede dairy demand and distribution.

Funding for expansion to Southeast Asia

The Australian government has awarded funding to the dairy industry to work to reduce technical trade barriers, such as product testing, shelf life and labeling. The government and industry stakeholders will work to expand opportunities in Southeast Asia with the funding.

Following four months of Global Dairy Trade price index declines, event 290 on August 17th has resulted in the GDT price index lifting, albeit by 0.3%. Northern Asian and African Butter buyers bought heavily at the event.

The average prices of dairy products in Oceania follow the trend of the latest GDT event, with increases for Butter, Cheddar and SMP, and a decrease for WMP, whose price remains above the levels of a year ago.

CLAL.it - New Zealand: Cheese Export

CLAL.it – New Zealand: Cheese Export

South America: pizzerias and restaurants are ordering additional cheese supplies

Spring-like climate conditions are lingering in the main dairy basins of Argentina and Uruguay. Despite some concerns about a possible rebound in feed prices, market participants report milk prices are good.

Milk deliveries in South American countries increased in the first half of 2021, with the exception of Chile, where the previous year’s production sprint seems to have stopped.

The prices of SMP and WMP reflect the trend of the main international markets, with SMP slightly increasing and WMP decreasing compared to the previous weeks.

The performance of the Cheese market was very positive, thanks to the additional supplies ordered from pizzerias and restaurants, and the increase in Argentine exports to other Latin American countries.

CLAL.it - South America: milk deliveries change

CLAL.it – South America: milk deliveries change in the first half of 2021

Source: CLAL processing on USDA, IHS and local sources.
Note: assessments about market trend are expressed in US$

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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.

Posted in News Oceania EN, News South America, Oceania_