News Oceania n°18/2014

Period: August 18 – 29, 2014

AUSTRALIA

• Milk production: is continuing to increase.
• Weather situation: temperatures are increasing and will improve pasture grass growth in the major dairy producing states.
• Milk producers: the Russian ban has raised concerns with producers that farmgate prices could be at risk.

NEW ZEALAND

• Milk production: is showing weekly increases.
• Weather situation: cool and wet conditions are making calving and producer operations marginally difficult.
• Milk producers: the lower milk prices to start the season have narrowed producer margins significantly.

MILK PRODUCTION

• New Zealand *: +11,48% (Jun 14 vs. Jun 13)
• Australia *: +1,47% (Jul 14 vs. Jul 13)

BUTTER (82%): mixed prices with substantial declines on the upper end of the range, caused by the lack of export opportunities to Russia from Australia; on the other hand New Zealand butter makers are receiving numerous inquiries from Russian buyers, and there are also discussions and negotiations to further expand the list of New Zealand plants approved to export to Russia; export demand is mixed with some increased interest coming from the Middle East and North Africa.

CHEDDAR CHEESE: price declines, pressured by the increases to global supplies caused by the Russian ban; production is increasing as milk flows expand.

SMP: prices decreased this period as concerns of expanded global supplies weighed on prices; production is increasing as milk flows expand; ucertainty on the market slows down exports.

WMP: price range has narrowed, and possibly a price floor is being established; manufacturers are closely monitoring the narrowing price advantage of SMP and butter over whole milk powder for possible production shifts, in order to produce the commodity of highest return.

The Russian ban generates uncertainty in the global market and, combined with increased milk production, puts pressure on prices.
China’s imports of dairy products are still above year ago levels: this favors the largest supplier of China, New Zealand, which, however, is not among the countries banned by Russia.

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 - Russia: Imports of Cheese from the Countries involved in the BAN and Countries not involved

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About CLAL 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 national and international market trends.