Oceania: prices still declining [News Oceania n°15/2015]

Period: July 13 – 24, 2015

AUSTRALIA

• Milk production: in June was 1.07% below May production, nearly unchanged if compared to June 2014.
• Weather situation: cooler temperatures and the lack of rain over much of Southern Australia are restricting pasture and forage growth.
• Milk producers: tight hay supplies and high transportation costs are prompting some dairy producers to look for more cost effective alternative feeds.

NEW ZEALAND

• Milk production: in May was 10.7% above May 2014 level.
• Weather situation: information not available for this period.

MILK PRODUCTION

• Australia *: +2,60% (Jul 14-Jun 15 vs. Jul 13-Jun 14)
• New Zealand *: +2.84% (Jun 14-May 15 vs. Jun 13-May 14)

BUTTER (82%): prices declined, light interest. Oceania year to date exports of butter and AMF (Anhydrous Milk Fat) up to May are below year ago levels.

CHEDDAR CHEESE: prices moved lower at the upper end of the range. Cheese is viewed as providing the best return to manufacturers, which is expected to draw more milk into cheese manufacturing in the new production year, away from powders, especially WMP. Demand is steady. Year to date cheese exports up to May were above year ago levels.

SMP: prices moved lower, light demand. Buyers show interest in booking contracts into 2016 at current prices, while manufacturers are reluctant to commit too much of production for too long. Oceania SMP exports up to May are above year ago levels.

WMP: prices moved lower. New Zealand manufacturers are attempting to lower current supply levels prior to the end of July, which is the close of the financial year in New Zealand. This factor is motivating some manufacturers in terms of offering prices. Demand is tepid, with many large volume buyers only interested in hand to mouth purchases as the new production season nears. Oceania exports of WMP up to May continue to perform below year ago levels.

Prices for butter, cheddar cheese, SMP and WMP in Oceania moved lower. Cheese is viewed as providing the best return to manufacturers.

CLAL.it – New Zealand: Milk Production and Dairy Export in ME (Milk Equivalent)

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

More informations about milk production in New Zealand and Australia are available on CLAL.it