Period: August 19 – September 13, 2019
Australia-8.4%New Zealand+4.6%milk production
July 2018 milk production is -8.4% from July 2018.
High cull rates following the 2019 drought, farm retirements and relatively high input costs have impacted negatively on the milk production.
New Zealand’s July milk production is +4.6% from last year. Even if it is spring, it has been cool, with snow in some remote areas. However pastures are in good shape.
Environmental standards, animal welfare, employment conditions: a bill to restructure the dairy industry
Dairy commodities prices
Average quotations of dairy commodities in Oceania have been decreasing compared to four weeks ago, but strengthening compared to the prices of Butter and SMP two weeks ago.
There are concerns among some Butter buyers that strong export demand might cause Butter to become harder to source in coming months.
Some Australian manufacturers report that not much WMP is being made in Australia now because milk is being diverted to Butter and SMP, where returns are better. Even so, SMP output remains below ideal volumes.
Much price movement for Cheddar Cheese and WMP is not expected, at least not until final September and October production data becomes available.
- 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