Higher returns for Mozzarella manufactured in Oceania [News Oceania n°18/2016]

Period: August 22 – September 2, 2016

AUSTRALIA

• Milk production: the new season opened weaker than last year: milk production in July was -10.3% below July 2015. This season is espected to yeld less milk than last season, but at a lesser decline than July reported.
• Weather situation: some areas have been very wet. The rainfall helps future pasture growth, if it is moderate.
• Milk producers: there is heightened interest among producers to change who they sell milk to, seeking higher prices. Processing capacity is limiting that option.

NEW ZEALAND

• Milk production: in July was +0.83% above July 2015.

MILK PRODUCTION

• Australia *: -10.34% (Jul 16 vs. Jul 15, data are provisional)
• New Zealand *: +0.53% (Jun – Jul 16 vs. Jun – Jul 15)

BUTTER (82%): prices increased. Supplies are tight in Australia, leading to some additional opportunities for New Zealand butter producers. Some Australian butter manufacturers are dealing with tight cream supplies, paying higher prices to assure supplies.

CHEDDAR CHEESE: prices increased slightly at the top of the price range. Supplies are tightening for some manufacturers. Higher prices and returns currently available for Mozzarella manufactured in Oceania has led to a shift in manufacturing preference toward Mozzarella from cheddar.

SMP: prices increased slightly. Available inventories at some manufacturers are tighter. With milk production at a low point in the annual cycle, production of SMP is also lower and most current production is already committed. Manufacturers expect some gentle price firming in coming weeks.

WMP: prices increased at the top of the price range. Firming is seen in coming weeks. With milk production at a low point in the annual cycle, production of WMP is lower and most current production is already committed.

Lower July milk production in Australia was not expected. Some producers reacted to low milk prices reducing cow numbers, others responded retiring. This lowered milk production, but the impact remains uncertain until it is better understood what happened to the cows of the producers who retired.

CLAL.it – Australia: Fresh Cheeses export

Mozzarella will have special relevance among the topics covered at CLAL Dairy Forum 2016: see the updated agenda.

CLAL.it – Today’s (September 6, 2016) GDT Auction results

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