Producing more WMP? No longer an obvious choice [News Oceania n°2/2017]

Period: January 9 – February 3 , 2017


  • Milk production: a number of processors are expecting a 6%-8% drop in milk production for the entire season (Jul 2016 – Jun 2017).
  • Milk producers: interest in buying hay is less active than usual for this period of the year: many dairy producers are well stocked with homegrown.


  • Milk production: weather situation contributed to lower milk production.
  • Weather situation: spring has been wetter than normal, affectiong pasture growth adversely. But dryer conditions may move forward in a few days.


  • Australia *: -8.55% (Jul – Dec 16 vs. Jul – Dec 15)
  • New Zealand *: -2.97% (Jun – Dec 16 vs. Jun – Dec 15)

BUTTER (82%): prices are stable. Processors in New Zealand are directing some milk away from butter toward WMP, as they are aware that butter prices in Western Europe are higher still. As a result, butter stocks are now in shorter supply. Now milk is shifting slightly back to SMP and butter production.

CHEDDAR CHEESE: prices are stable. Cheese manufacturers in New Zealand point out that even with lower milk production in New Zealand, cheese exports swam against the tide and have been stronger.

SMP: prices unchanged. In New Zealand, milk is shifting slightly from WMP back to SMP and butter production due to perceptions of profitability.

WMP: prices range narrowed, average slightly decreased. Concerns about profitability have led to reducing WMP volumes produced so as to produce more SMP. Making more WMP no longer seems to be an obvious choice.

January is a summer vacation month for many Australians. This, combined with lower milk production, kept market activity much slower. - Returns on SMP + Butter in Oceania, United States and Germany – Returns on SMP + Butter 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

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The 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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  1. […] Production (Jul – Dec 16 vs. Jul – Dec 15) : Australie -8.55% , New Zealand -2.97%. Prix stables pour le beurre, le cheddar et SMP. WMP: la fourchette des prix a diminué, la moyenne a légèrement diminué. Les préoccupations concernant la rentabilité ont conduit à réduire les volumes de WMP produits de manière à produire plus de SMP. Faire plus de WMP ne semble plus être un choix évident.  […]

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