Production season has shifted to later in Australia [News Oceania n°25/2016]

Period: November 28 – December 9, 2016

AUSTRALIA

• Milk production: many observers feel the milk production season has shifted to later this year.
• Weather situation: cold and wet spring was followed by cooler than normal weather with rain in summer.
• Milk producers: now grass growth is good and fodder ample. Cow comfort is quite good. Expectations are for dairy producers to be well able to keep production levels stable at reasonable expense.

NEW ZEALAND

• Weather situation: no updates for this time period.

MILK PRODUCTION

• Australia *: -10.29% (Jul – Oct 16 vs. Jul – Oct 15)
• New Zealand *: -2.44% (Jun – Oct 16 vs. Jun – Oct 15)

BUTTER (82%): prices firmed. In Australia, butter stocks are tight. Cream supplies available are limiting production of Butter in Oceania. There are reports of some smaller volume commercial users of butter going to retail outlets and buying packaged butter for their manufacturing needs.

CHEDDAR CHEESE: prices firmed. In Australia cheese is often a preferred use for milk currently available. In contrast, some New Zealand manufacturers have moved away from cheese to other dairy products which are  viewed as more profitable.

SMP: prices unchanged. There is concern in the region with the ongoing sale of intervention stocks in the  EU and future sale intentions. However, reports of recent increased export activity has been encouraging.

WMP: prices increased. WMP has become viewed as a preferable use of New Zealand milk in terms of  profitability, and many manufacturers expect WMP to remain an attractive outlet for milk.

Many Australian producers will be cautious in considering herd expansions, also being aware that price  strengthening is partly a function of current milk production volumes.

CLAL.it – Milk production season in Australia

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.