Oceania: the decrease in prices continues [News Oceania n°8/2015]

Period: April 6 – 17, 2015

AUSTRALIA

• Milk production: increases, leaded by the weather.
• Weather situation: favorable to milk production in most dairy regions.

NEW ZEALAND

• Milk production: February milk production was 1.86 million Tons, -5.7% if compared to February 2014 and +5.5 if compared to February 2013.

MILK PRODUCTION

• New Zealand *: +2.48% (Jun 14-Feb 15 vs. Jun 13-Feb 14)
• Australia *: +2.75% (Jul 14-Feb 15 vs. Jul 13-Feb 14)

BUTTER (82%): prices moved lower at the bottom of the range; New Zealand prices are weaker than in Australia.

CHEDDAR CHEESE: prices moved slightly lower at the top of the range; very quiet market; with the end of the production season near, most stocks are committed and moving to customers; available milk is tending to flow into other products.

SMP: prices declined; some manufacturers have more offerings than comfortably stocked customers seem interested in.

WMP: prices are weaker; competitive pricing from the EU continues to be a factor; not many buyers are looking to cover needs.

Demand for Australian dairy products from traditional large Asian customers has become sluggish due to what is perceived as a slowing of China’s economy. Carryover inventories for many processors are said to be weighing on markets as well.

SMP price competition among US, Europe and Oceania

CLA.it – Oceania: fortnightly prices of SMP

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