Oceania: demand for dairy commodities grows [News Oceania n°20/2015]

Period: September 21 – October 2, 2015

AUSTRALIA

• Milk production: is moving towards the seasonal peak.
• Weather situation: spring is continuing to be dry in some key dairy areas which is causing some concern.

NEW ZEALAND

• Milk production: is forecasted lower then last year.
• Weather situation: the cold, wet weather has not been conducive to forage growth. This has decreased production.
• Milk producers: the decrease in milk production coupled with the low farmgate level pricing has led to an increase in cow culling.

MILK PRODUCTION

• Australia *: +5.36% (Jul 15 vs. Jul 14)
• New Zealand *: +1.57% (Jun-Aug 15 vs. Jun-Aug 14)

BUTTER (82%): maximum prices are higher. Export demand is still strong as the U.S. prices remain high. Buyers are taking advantage of current pricing levels as prices continue to climb.

CHEDDAR CHEESE: prices are trending higher. Domestic demand is steady to higher, but export demand is slightly lower. Production is steady to higher as some manufacturers are choosing to make cheese to store for future needs.

SMP: prices are moving up. Production is increasing as processors want to build stock levels as prices go up. Buying demand is high.

WMP: prices are higher. Production is increasing as manufacturers believe that WMP will yield the most profitable returns. Demand is stronger as some buyers are interested in purchasing at current pricing levels as prices continue to rise.

Demand for Butter, SMP and WMP is higher: buyers are interested in purchasing at current pricing levels.

CLAL.it – Latest Global Dairy Trade auction results (Oct 6, 2015)

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.