News Oceania n°5/2015

Period: February 23 – March 6, 2015

AUSTRALIA

• Milk production: is holding fairly steady compared to recent weeks. January 2015 milk production in Australia was 0.6% above January 2014.
• Weather situation: a strong cyclone made landfall in Queensland and triggered thunderstorms over most of the major dairy producing region.

NEW ZEALAND

• Milk production: continues to decline. The rate of decline has accelerated significantly and will lead to a shorter season, compared to last year.
• Weather situation: the Canterbury region on the South Island continues to be very dry.
• Milk producers: have increased their cull rates and are moving to once a day milking schedules.  Indeed, the lower milk price and the higher cost of feed has led producers to reduce milk production.

MILK PRODUCTION

• New Zealand *: +3,52% (Jun 14-Jan 15 vs. Jun 13-Jan 14)
• Australia *: +2,37% (Jul 14-Jan 15 vs. Jul 13-Jan 14)

BUTTER (82%): prices moved higher; demand is good; export demand is primarily coming from the Middle East and Southeast Asia; some buyers are securing supplies ahead of possible future price increases; supplies are more readily available in New Zealand than Australia, as Australian stocks are mostly committed to cover domestic needs; butteroil prices moved higher with buyer concerns about reduced future supplies and increased buying activity from Southeast Asia.

CHEDDAR CHEESE: price at the upper end of the range decreased; export demand remains fairly good with active interest coming from Southeast Asia and China; Australia’s available supplies for export have increased as domestic sales have slowed after the recent price increases.

SMP: prices moved higher; demand is mixed; supplies are readily available in both Australia and New Zealand; global SMP supplies are expected to increase in the coming weeks as milk production increases in the northern hemisphere.

WMP: prices increased substantially; the price increases over the past number of weeks have improved returns for WMP, and some additional milk flows have been diverted to expand production; demand is beginning to show some signs of slowing as some buyers with adequate supplies are willing to hold off purchases; some are of the opinion that the market might be at or near its high point.

New Zealand: manufacturers have adopted flexible production schedules for the various dairy commodities in order to capture the best returns.

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

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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.