New Zealand: availability of supplies for export [News Oceania n°12/2015]

Period: June 1 – 12, 2015

AUSTRALIA

• Milk production: steady at typical low seasonal levels; various manufacturing facilities are closed for the yearly maintenance.
• Weather situation: an “El Nino” has been declared by Australian meteorology officials, which results in warm dry conditions covering Oceania, Southeast Asia, China and India.
• Milk producers: the possibility of dry conditions, delaying or limiting the 2015 hay harvest, has caused dairy producers to reassess their forage supplies.

NEW ZEALAND

• Milk production: at very low seasonal levels.
• Milk producers: most cows have been dried off and moved to winter pastures.

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%): production is limited following the seasonal decline in milk production and also due to increased demand for fluid cream, cream cheese and other cream based products; demand has weakened; prices moved significantly lower.

CHEDDAR CHEESE: production has slowed; increased competition from the EU on the Japanese market; some manufacturers have expanded their production capacities for mozzarella and specialty cheeses as Asian consumer tastes are turning more to pizzas and other Western type menu offerings; prices held steady.

SMP: active production schedules in the US and the EU are contributing to the weak market undertone; demand remains slow; prices moved marginally lower.

WMP: demand from China has been sluggish and below expectations, but some Southeast Asian countries been fairly active buyers. Singapore has been especially active with puchases of WMP for blending and re-exporting purposes; prices moved lower.

Australian supplies are primarily covering domestic demand, while supplies for export are more readily available in New Zealand. Buyers feel no urgency to make purchases in a weak market, so global demand remains sluggish. In effect, inventories for some commodities are more than anticipated.

CLAL.it – New Zealand: Main Importers of WMP (excluding China)

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