“Grass Fed” Butter from New Zealand [News Oceania n°22/2016]

Period: October 17 – 28, 2016

AUSTRALIA

• Milk production: expectations for October are being revised lower. Reasons for the lower production include continuing producer dissatisfaction with recent pricing decisions, wich also led to an increase in culling cows.
• Weather situation: wet conditions in Northern Australia and Western Victoria have further impacted milk production.

NEW ZEALAND

• Milk production: there are increasingly voiced expectations that production in December and January will be sufficient to result in seasonal production higher than last season.

MILK PRODUCTION

• Australia *: -9.94% (Jul – Sep 16 vs. Jul – Sep 15)
• New Zealand *: -0.19% (Jun – Sep 16 vs. Jun – Sep 15)

BUTTER (82%): prices firmed at the bottom of the range. There is little expectation of production significantly increasing in coming weeks, which some observers believe may support prices trending up looking forward.

CHEDDAR CHEESE: prices weakened. It is believed that markets are reacting to the relatively quick slowing of export volumes.

SMP: prices weakened. While regional milk supplies available to make SMP are tighter, the large stocks of SMP held in Europe are a concern in Oceania.

WMP: prices firmed at the bottom of the range. With weaker milk production, concerns about milk volumes that will be available to manufacture WMP in coming months caused heightened current buying interest, strengthening prices.

A new initiative to produce and export butter from “Grass Fed” milk is underway in New Zealand. This is expected to create a new outlet for New Zealand milk with higher return..

CLAL.it – Global Milk supply variation

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