New Zealand exports SMP and WMP to Algeria [News Oceania n°13/2015]

Period: June 15 – 26, 2015

AUSTRALIA

• Milk production: is steady at seasonally low levels.
• Weather situation: conditions over most of the major dairy producing areas are favorable for milk production.
• Milk producers: in some areas producers are purchasing additional forage supplies to compensate for the effect of dry climate.

NEW ZEALAND

• Milk production: a large majority of producers have dried off most of their cows for the season.
• Weather situation: major flooding on the southern portion of the North Island. The impact on the dairy industry has not yet been assessed.
• Milk producers: Ministry of Primary Industries anticipates milk solids for the upcoming 2015/16 season to fall 1.35%. Reasoning behind the decline is the expectation of reduced supplemental feeding as dairy producers attempt to trim costs of production, given lower farmgate prices.

MILK PRODUCTION

• New Zealand *: +2.57% (Jun 14-Apr 15 vs. Jun 13-Apr 14)
• Australia *: +2,93% (Jul 14-Apr 15 vs. Jul 13-Apr 14)

BUTTER (82%): prices moved marginally higher on the low end of the range; there continues to be some export demand coming from the United States, but demand interest from the US has slowed as domestic supplies have increased.

CHEDDAR CHEESE: prices moved lower; cheese is being made to fill domestic needs and limited export needs; Japan negotiations saw increased competition from Europe; the market tone is weaker as supplies in the northern hemisphere are increasing.

SMP: prices held steady; most plants are down for planned maintenance; supplies are more than adequate to fill existing orders; demand is limited, while levels of milk production and drying schedules in the northern hemisphere grow; some large volumes were transacted in recent weeks as manufacturers in Oceania received a large share of the Algerian (ONIL) tender.

WMP: prices marginally increased on the low end, as prices for orders later in the year inched higher; Oceania supplies saw some needed relief with good volumes being moved through the Algerian tender.

Butter, cheddar cheese, SMP and WMP productions decreased, following the seasonal low levels of milk production.

Most export markets have a weak undertone as global supplies are abundant and demand from China and Russia remains low.

At Algerian (ONIL) tender substantial volumes of WMP and SMP were awarded to New Zealand. These sizable awards may provide some relief over concerns of expanded, uncommitted supplies.

CLAL.it – Prices of SMP in Oceania, US and 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

More informations about milk production in New Zealand and Australia are available on CLAL.it