Tight milk and butter supplies in New Zealand [News Oceania n°10/2018]

Period: April 30 – May 11, 2018

+2.5%milk production
March 2018

Australia is nearing the end of the milk season, recording in March 2018 an increase by +2.5% from March 2017. July 2017-March 2018 milk production was +3.4% over one year earlier. In Victoria, the most productive region accounting for 64.8% of Australian milk production, milk production increased by 3.8% over the same period a year ago.

Demand for hay in Northern Australia is higher, due to seasonally cooler temperatures. New season hay is being snapped up from milk producers from New South Wales and Victoria, who are competing with exporters for that hay. That has led to some price firming.

The dairy season in New Zealand will end on May 31st. Milk production in the first 10 months was -0.3% than in the previous season. Recent better than expected milk production will boost the seasonal total, due to improvement in pasture conditions. Nevertheless, seasonal production will be lower than last season.

Butter prices in Oceania are steady to higher, but still lower than pricing in Western Europe. Australia has higher milk volumes than last year, which is helping move cream to churns. Domestic butter demand is good. In New Zealand butter supplies have tightened reflecting lower milk volumes and lower fat components.

SMP prices also strengthened. Manufacturers have sufficient inventories to meet the demand in a period of low seasonal production.

WMP prices are slightly lower. At this time of the year WMP is the priority milk destination and some manufacturers are working to keep pace with contract obligations.

Cheddar brings strong returns

Cheddar continues to bring strong returns. Prices firmed again, reaching a 2018 peak. Many cheese makers would like to have more milk available, so stocks are being drawn down to meet obligations.

CLAL.it - Cheddar price in Oceania and Edamer price in Germany

CLAL.it – Cheddar price in Oceania and Edamer price in 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
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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.

Posted in News Oceania EN, Oceania_