New Zealand: Milk Production decreasing [News Oceania n°22/2019]

Period: November 11 – 22, 2019

Extremely hot and dry weather in Northern Australia has adversely impacted hay production, adding to costs for dairy producers. Hay from Southern Australia and Victoria is trucked North to help meet demand.

Rumours of possible changes to the proposed new Australian Dairy Code, which are believed to permit processors to amend contracts should unforeseeable events occur, are leading to vocal pushback by dairy producers.

New Zealand-2,6% milk production October 2019

In New Zealand October data, the month with peak seasonal milk production, record a decrease in volumes of 2,6%, compared to October 2018. This decrease was anticipated by some New Zealand based dairy industry people. This results in current season milk production through October being 0.68 percent lower than this point last season.

Dairy Commodities Prices

Butter prices in Oceania are lower, reflecting weaker pricing for dairy fats in the region. Churning schedules remain at or near seasonally high levels, creating an unexpected growth in current stocks.

Opposite trends for WMP, SMP and Cheddar Cheese.

With production now declining, buyers of SMP are more active, especially for the near term.

Cheddar: negotiation are starting for second half 2020

WMP prices moved higher, along with interest in stocking for coming months. The production remains seasonally strong.

Cheddar prices are higher, reversing the price trends from recent periods. Negotiations with manufacturers are just starting, or will soon begin, for second half 2020 contracts. - Milk Production in New Zealand – Milk Production in New Zealand

- 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_