Period: September 18 – 29, 2017
Fonterra, the large dairy cooperative, has announced plans to increase the milk supply in Australia as well as dairy processing capacity. There is a waiting list of dairy producers hoping to join the coop, partly developed as a reaction to recent Murray Goulburn difficulties. Expansion of capacity will be focused initially on cheese, whey and dairy nutritionals.
-1.56% New Zealand milk production,
Prolonged wet weather in New Zealand has stalled previously projected seasonal growth in dairy production. August production volumes were -1.56% lower than August 2016.
Domestic butter supplies in Australia remain tight. Retail prices are starting to generate comments from consumers.
No significant changes in Cheddar prices are expected in coming weeks.
Lower expectations for seasonal milk production in New Zealand helped WMP prices, which firmed (+2.83% AVG on previous update).
– Dairy season: July, 1st – June, 30th (Australia), June, 1st – May, 31st (New Zealand);
– Source: USDA summarized by the CLAL Team