News Oceania n°15/2014

Period: July 7 – 18, 2014

AUSTRALIA

• Milk production: it’s near the seasonal low point.
• Weather situation: normal winter conditions with cold an rains are covering much of the dairy producing areas.
• Milk producers are ready for a good start to the new season due to the beginning season milk prices which are above levels of years past.

Export is light with reports that China has mostly adequate supplies for the near term and Ramadam has lowered export interest from the Middle East. Stocks are being worked lower with supplies moving through contracts.

NEW ZEALAND

• Milk production: is limited, as a majority of cows are dried off and on winter pastures.
• Weather situation: weather remains mild on the South Island, but the North Island has seen heavy rains and colder temperatures with some flooding occurred in the north of Auckland.
• Milk producers: are awaiting for the start of the new season.

Some manufacturers are adjusting their production schedules away from WMP to SMP and Butter production. New Zealand’s 2013-2014 export revenue increased by 30% according to a report released by the Ministry of Primary Industries.

MILK PRODUCTION

• New Zealand *: +9,37% (Jun 13 – May 14 vs. Jun 12 – May 13)
• Australia *: -0,19% (Jul 13 – May 14 vs. Jul 12 – May 13)

BUTTER (82%): low butter prices; demand from Middle East are slowing due to the Ramadam whereas from Southeast Asia and portions of North Africa are steady; Russia is negotiating with a number of sellers to cover their Q4 needs; stocks are nearing their seasonal low point; spot sales activity is light.

CHEDDAR CHEESE: prices moved lower; production has yet to pick up; declines in the WMP market have made cheese production more economical; milk volumes going to cheese plants are anticipated to increase in the first half of the new season.

SMP: low prices; demand is steady to weak; spot sales has declined; some buyers are waiting for the possibility of lower prices; global supplies for late Q3 and early Q4 are anticipated to be fairly heavy.

WMP: prices decreasing; some large manufacturers have more than normal levels of WMP stocks, while others have nearly depleted supplies; light sales activity with China supplies in balance with their needs; the lower prices are causing some manufacturers to plan to lower their WMP production schedules at the start of the new season.

In the first half of the new season (2014/2015), milk volumes going to cheese, butter and SMP manufacturers are anticipated to increase due to the light interest from China for WMP supplies.

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 – CHINA: Import from New Zealand

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About Alessandra Bignardi

Degree in Economics with focus in Marketing and Sales, she belongs to the CLAL.it Team. 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 Italian and international market trends.