Period: February 18 – March 1, 2019
In Australia, many Milk Producers continue to shrink herd size to cope with current drought and water needs. The data for the first half of the 2018-19 season recorded a production lower by 5.2% from previous year. In December 2018 there was a reduction of -6.9%.
Higher output per cow in New Zealand
Milk production, in the period June 2018 – January 2019, recorded +4.9%. January 2019 milk production was +8.7% from January 2018.
Fonterra has increased its 2018-19 forecast Farmgate Milk Price range to 6.30-6.60 NZD/kgMS, up from 6.00-6.30. Fonterra Chairman John Monaghan said the improved milk price forecast reflects the increases in global milk prices over the last quarter.
Buyers expect weaker SMP prices and higher Butter prices
Current availability of Butter is pretty good, leading to a lower price. Expectations in coming months are for higher prices.
WMP price in Oceania is also moving lower. Looking ahead, prices for the next several months are not expected to trend much away from current pricing. Manufacturers are making profits at current pricing.
- 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