News Oceania n°2/2015

Period: January 12 – 23, 2015


  • Milk production: continues on its seasonal decline.
  • Weather situation: significant rains covered much of the dairy region in Victoria, and partially alleviated the dry conditions.


  • Milk production: is declining at an accelerated pace. New Zealand cooperatives have revised their seasonal forecasts with seasonal production now estimated to be ranging from flat to 1.5% above last year’s production.
  • Weather situation: dry conditions over both islands. Conditions are more severe on the South Island where some irrigation systems are being shut down, due to low river levels.
  • Milk producers: rains are forecast in the coming week, but the impact of these rains on milk production will be marginal at best as farmgate prices remain low and are a disincentive for producers to extend the milk production season


  • New Zealand *: +4,32% (Jun-Nov 14 vs. Jun-Nov 13)
  • Australia *: +3,55% (Jul-Nov 14 vs. Jul-Nov 13)

BUTTER (82%): the prices range narrowed with an increase on the low end of the range, while prices declined on the upper end; offerings for export have declined; export and domestic demand are good; global prices have converged over the past number of weeks and have resulted in some Oceania prices above European prices.

CHEDDAR CHEESE: prices unchanged; production have been augmented with some milk diversions from WMP production, resulting in some marginal increases in production; domestic demand is good and exports are performing well, but are encountering increased competition from the U.S.

SMP: prices moved marginally higher on the low end of the range; production is active and supplies are readily available, but not burdensome; demand is fairly good with continued interest from those countries with weaker economies who typically purchase SMP when prices are relatively low.

WMP: prices moved higher on the low end of the range; production is decreasing as milk volumes decline, but also due to milk flows being diverted from WMP production to other commodities offering a better return; supplies are more than adequate to cover needs, but not burdensome; the dry conditions in New Zealand have sparked some increased export interest.

In December New Zealand has lost part of its share on SMP and WMP exports to China, in favor of the European Union, while Australia and the United States have increased their share on Chinese imports of cheese. New Zealand’s share decreased also on Chinese imports of butter, in favor of the European Union and Australia (Data source: GTIS).

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 - Butter Prices in Oceania and Germany – Butter Prices in Oceania and Germany

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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_

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