Oceania: cheese and milk powders pricing steady, butter increased [News Oceania n°24/2015]

Period: December 14 – 25, 2015

AUSTRALIA

• Weather situation: pasture growth in Victoria, a substantial milk producing state, continues to decline due to dryness. While irrigation has historically helped maintain pasture growth, water this year is more expensive and difficult to source.
• Milk producers: with lower milk prices this year, there has been some selling of cows, which reduces milk production. That is also being encouraged by higher beef prices.

NEW ZEALAND

• Milk production: the dairy herd midyear was just over 5 million cows, 3.3% lower than one year earlier and the first contraction in some years.
• Milk producers: Some New Zealand milk producers will receive higher pay prices in the current milk year.

MILK PRODUCTION

• Australia *: +1.91% (Jul-Oct 15 vs. Jul-Oct 14)
• New Zealand *: -3.45% (Jun-Oct 15 vs. Jun-Oct 14)

BUTTER (82%): prices increased at both ends of the price range. Recent demand for near time shipments to Asia moved sufficient volumes to contribute to higher pricing.

CHEDDAR CHEESE: pricing is steady. Effects of the international price competition and domestic demand contribute to price stability.

SMP: prices are steady. Ongoing pressure from strong supplies has kept prices from rising, while intervention in the E.U. is acting to mitigate downward price movement.

WMP: pricing is steady. Because other manufacturing streams are more profitable and demand is spotty, production volumes are uneven for most manufacturers. More buyer interest and higher manufacturing volumes are not expected in the immediate future, but neither is significant downside price risk expected.

CLAL.it – Butter prices

CLAL.it – Butter prices in Oceania and Germany

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