Period: January 26 – February 6, 2015
AUSTRALIA
- Milk production: moved marginally lower.
- Weather situation: many parts of the country are already experiencing dry conditions which will impact livestock and crops in 2015.
- Milk producers: hay demand has slowed as dairy producers are utilizing summer forage crops and available paddocks.
NEW ZEALAND
- Milk production: the combination of dry weather and low farmgate prices are bringing a quick end to milk production on both islands. The accelerated declines have prompted cooperatives to lower their seasonal forecasts.
MILK PRODUCTION
- New Zealand *: +4.12% (Jun-Dec 14 vs. Jun-Dec 13)
- Australia *: +2.62% (Jul-Dec 14 vs. Jul-Dec 13)
BUTTER (82%): prices moved higher; demand continues to be very active, mainly from Southeast Asia and the Middle East; a majority of supplies are committed; available supplies have tightened, but prices have not responded as anticipated and may reflect that potential buyers have adequate supplies for the near term.
CHEDDAR CHEESE: prices unchanged; the cheddar market is weak, due to increased global supplies and competition from the Northern Hemisphere; demand is steady, but the supply situation has changed with buyers shopping for the best product and price that fits their needs; cheddar returns are beginning to converge with other production streams, so there may be some decreases in production in the near term.
SMP: marginal price increases; some renewed export interest; increase in competition and supplies from the Northern Hemisphere; Oceania production may be restricted for the remainder of the season, due to declines in milk production, especially in New Zealand.
WMP: prices moved higher; renewed WMP demand; a majority of current stocks are committed; Australian production and exports have been restricted, due to diversions of milk flows to more profitable dairy products for a number of weeks; some Australian manufacturers have noticed significant demand increases for instantized WMP from China in recent weeks and may be a prelude to increased interest for regular WMP.
In New Zealand the announcement of forecasts below year ago levels and the likelihood of reduced GDT volumes has sparked buyer interest for various dairy products, especially WMP. New Zealand’s December 2014 WMP exports were 9.5% above year ago levels.
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
CLAL.it – New Zealand: WMP monthly export
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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.
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