A higher milk price to encourage milk production in Australia [News Oceania n°15/2019]

Period: July 22 – August 2, 2019

Irrigation rebate and loyalty payment for Milk Producers

In Australia competition among processors for milk has resulted in upward movement in milk pay prices for the new season. The higher price is intended to encourage more milk production and it includes an irrigation rebate for producers in Victoria and a loyalty payment for milk producers who commit to supply milk for three years.

In New Zealand, pasture grass is in good condition. June 2019 milk production was +14.1% from June 2018. June is the first month of the new season and the lowest milk production month.

Dairy commodities prices

After the recent increase, the prices of dairy commodities in Oceania are steady.

WMP is typically the priority production use for milk, but at current seasonally low milk output, even many WMP plants are well below production capacity.

Very limited quantities of SMP, Butter and Cheddar Cheese are being manufactured during this low point of the milk production cycle.

Buyer interest for Butter is good and contracting is underway for future months. Spot market sales are infrequent.

- 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

CLAL.it - Production of cow's Milk in New Zealand

CLAL.it – Production of cow’s Milk in New Zealand

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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, Oceania_