News Oceania n°9/2014

Period: April 14 – 25, 2014; Source: USDA

MILK PRODUCTION

AUSTRALIAN milk production trend is fairly steady. Mild temperatures and the arrival of autumn rains, greening up pastures, are helping maintain milk intakes above year ago level.

NEW ZEALAND milk production is well above year ago levels, particularly the South Island is contributing with greater volumes due to favorable weather conditions. On the South Island timely rains have provided  for more than adequate forage growth and dairy herd expansion is continuing with reports of at least 50 dairy conversions ongoing. On the North Islands due to recent heavy rains and high winds  most milk producers are drying off cows, managing feed stocks and preparing for the next season.

• New Zealand *: +6,37 % (Jun 13 – Feb 14 vs. Jun 12 – Feb 13)
• Australia *: -1,36 % (Jul 13 – Mar 14 vs. Jul 12 – Mar 13)

BUTTER (82%): prices declined; production has slowed although levels are adequate to cover commitments; steady export interest from the Middle East and Southeast Asia; tight stocks; light demand.

CHEDDAR CHEESE: prices declined; weak export demand; production adequate to cover commitments; limited supplies available for the spot market.

SMP: prices declined; slightly higher production as cream demand remains significative; good demand for SMP from Middle East and Southeast Asia.

WMP: prices declined; production in balance with demand; a majority of supplies are committed with little available for the spot market.

Most dairy product prices have recently declined, due to global milk production increases and lower exports to China. The lower prices have prompted some buyers to re-enter the market. There are current tenders for milk powders coming from Algeria and Venezuela.

Note: · Assessments about market trend are expressed in US$;
· * Dairy season: July, 1st – June, 30th (Australia), June, 1st – May, 31st (New Zealand)

CLAL.it – Comparison among Skimmed Milk Powder (SMP) Prices in Germany, USA and Oceania