Oceania: increased feed availability for the dairy cows [News Oceania n°14/2016]

Period: June 27 – July 8, 2016

AUSTRALIA

• Weather situation: precipitations in recent weeks have helped pasture health.
• Milk producers: good cropping and pasture feed availability has contributed to reduced market purchasing of feed. There remains some intensified demand for higher quality hay, even being more expensive, in hopes that the higher quality will contribute to net returns. The expectation is intensifying for hay prices to weaken.

NEW ZEALAND

• Milk producers: as last season drew to a close, there was conflicting activity: culling by some and seeking to increase total milk output to increase gross revenues by others. Culling activity is light at this time, as many dairy producers take a wait and see approach. Pastures have overall been good. Feed prices have been considered low.

MILK PRODUCTION

• Australia *: -1.46% (Jul 15 – May 16 vs. Jul 14 – May 15, provisional data)
• New Zealand *: -1.58% (Jun 15 – May 16 vs. Jun 14 – May 15)

BUTTER (82%): prices increased. Manufacturers are less certain as to whether these prices will persist or increase further. Butter production in Australia Jan-Apr 2016 was -5.4% below Jan-Apr 2015. April production was 15.3% below April 2015.

CHEDDAR CHEESE: prices unchanged. Cheese production in Australia Jan-Apr was slightly above the same period of last year. April production was +10.3% above April 2015. The variety with the highest volume of production, cheddar, for Jan-Apr this year was -3.2% below the same period last year. April production was +21.0% above April 2015.

SMP: prices increased. SMP production in Australia January-April was +8.8% above the same period of last year. However, April 2016 production was -11.6% below April 2015.

WMP: prices strengthened as buyers act to secure current deliveries. WMP production in Australia Jan-Apr was -22.7% below the same period of last year according to Dairy Australia. April production was -62.2% below April last year.

In Oceania good pasture and cropping have increased feed availability for the dairy cows, and as a consequence hay prices could weaken in Australia.

CLAL.it – Butter prices in Oceania, United States 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

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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.