New Zealand: milk production higher than expected [News Oceania n°15/2016]

Period: July 11 – 22, 2016

AUSTRALIA

• Milk production: during May was 5.5% below May 2015.
• Milk producers: lingering multi-year dryness and low milk prices have led to herd reductions.

NEW ZEALAND

• Weather situation: has turned cooler, with rain and wind. The rain may be helpful in terms of replenishing water reserves in some areas that had been dry.
• Milk producers: are feeling more positive this milk production season. Many are finding that production outputs are better than they had been expecting.

MILK PRODUCTION

• Australia *: -1.46% (Jul 15 – May 16 vs. Jul 14 – May 15, provisional data)
• New Zealand *: unchanged (Jun 16 vs. Jun 15)

BUTTER (82%): prices decreased: this weakness was unanticipated by a number of observers. Buying interest also declined following recent active additions to inventories by some buyers.

CHEDDAR CHEESE: prices decreased slightly at the top of the range. Current buying interest was slow.

SMP: prices unchanged, with little market activity: most regular customers are believed to have decent inventories.

WMP: prices increased slightly at the bottom of the range.

Demand of Butter, Cheese and SMP from Oceania declined: most regular customers are believed to have decent inventories.

In the January – May 2016 period, China was New Zealand’s first importer of Butter, Cheese and SMP, and third importer of WMP.

CLAL.it – New Zealand: dairy export by product

CLAL.it – New Zealand: total dairy export in milk equivalent, by destination area

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