Yili to take over Westland [News Oceania n°13/2019]

Period: June 24 – July 5, 2019

Australia milk production, in the month of May 2019, decreased by 13.6% compared to the same month of the previous year. The overall trend of the season, negative in all the States of Australia with the exception of Tasmania, marks -7.7% for the period July 2018 – May 2019.

In New Zealand, the milk production season (June 1 – May 30) ended with an increase of +2.2%. The volumes of May 2019 recorded a slight decrease (-0.1%).

Westland Milk Products farmer shareholders have voted strongly in favour of sale to Chinese company Yili Industrial Group. A group of dairy producers has asked the government to delay closing the sale until the producers are paid.

Dairy commodities prices

Butter prices in Oceania are weaker. Buyer interest for current needs is sluggish, as most Buyers are amply stocked. While early season milk production is increasing slowly, low Butter production is destined for markets in Australia and New Zealand rather than export.

Cheddar average prices are also weaker, due to low buying interest.

Average prices for WMP in Oceania strengthened and contracting for coming months is ongoing. New season WMP production has begun and will be increasing quickly.

Also SMP prices firmed. Enough Buyers are in the current market to nudge prices higher.

- 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