Period: April 20 – May 1 2015
AUSTRALIA
- Milk production: is showing some increases, due to favorable weather conditions. March 2015 milk production was 4.9% above March 2014.
- Weather situation: conditions are favorable for milk production.
NEW ZEALAND
- Milk production: continues to decline, but the recent rains have prompted some producers to extend the milking season a bit longer.
- Weather situation: beneficial rains over the past few weeks. Soil moisture levels have improved, but remain below the historical average in some areas, especially on the South Island.
MILK PRODUCTION
- New Zealand *: +2.18% (Jun 14-Mar 15 vs. Jun 13-Mar 14)
- Australia *: +2.94% (Jul 14-Mar 15 vs. Jul 13-Mar 14)
BUTTER (82%): prices moved lower on the upper end of the range; manufacturers want to reduce uncommitted supplies prior to the end of the fiscal year (June 30 for Australia and July 31 for New Zealand); uncommitted supplies are more readily available in New Zealand.
CHEDDAR CHEESE: prices unchanged; production in Australia has declined as some plants are beginning to cycle through planned closures for maintenance projects: as a result, supplies available for the spot market are limited; demand is fairly steady.
SMP: prices moved lower; buyer interest has increased marginally; some manufacturers with reduced uncommitted supplies are opting to hold those inventories for later in the year when prices may be possibly higher.
WMP: prices moved lower as uncommitted supplies continue to weigh on the market; demand is significantly below year ago levels, primarily due to China’s reduction in purchases compared to last year; the market has a weak undertone.
Demand for Australian dairy commodities has declined as many buyers have recently made purchases and have their near term needs covered. There is a building consensus among dairy analysts that dairy commodity markets are at or near the low point, but it will take a considerable amount of time for prices to substantially recover.
Major dairy associations in New Zealand, Australia and the United States are calling for a timely and successful conclusion to the TPP (Trans-Pacific Partnership) trade talks. It is hoped the negotiations will result in reduced trade restrictions and enhanced nutritional security.
Over the past year, there have been increasing efforts by some Australian manufacturers to expand their production of UHT to fill China’s increasing demand for fluid milk.
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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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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