News Oceania n°12/2014

Period: May 26 – June 6, 2014

AUSTRALIA

• Milk production: it remains steady with recent weeks under mild temperatures and adequate rainfall
• Weather forecast: autumn rains have prompted some good grass growth and hay supplies are at more than adequate levels in the southern, dairy export-focused regions
• Milk producers are being prompted to make as much milk as possible under the current farm gate price which should be higher than the milk prices projected for next season

NEW ZEALAND

• Milk production: has entered the typical low production period for the year
• Milk producers: some cooperatives indicate that over half of the cows have been dried off and moved to winter pastures

MILK PRODUCTION

• New Zealand *: +7,63% (Jun 13 – Mar 14 vs. Jun 12 – Mar 13)
• Australia *: -0,84% (Jul 13 – Apr 14 vs. Jul 12 – Apr 13)

BUTTER (82%): unchanged prices for the spot market whereas lower for Q3 contracted supplies; reduced current production which is useful to fill domestic and export orders; most stocks are committed with limited supplies available for the spot market; buyer interest has improved for Q3 supplies with Russia as possible buyer.

CHEDDAR CHEESE: prices higher on the upper end of the range; limited product availability; export sales light; negotiations are ongoing with Japan for Q3 supplies.

SMP: low prices due to the competitiveness with the EU market; buyer interest has improved in particular from Southeast Asia; limited spot sale availability with most supplies committed.

WMP: lower prices; limited product availability with most stocks committed; good buyer interest from Southeast Asia and the Middle East, limited the interest from China.

China seems to be:

• the main destination for Australian dairy cattle exports;
• the main destination for New Zealander whole milk powder exports and for infant formula exports as five manufacturers working on this field have gained, with other companies, approval to export into China.

Note: · 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 – Comparison among the SMP Prices in Oceania, USA and Germany