NEWS from OCEANIA: dairy market n° 9/2013
(29 April - 10 May 2013) source: USDA
New Zealand milk production trends continue to lower and the total 2012-2013* season milk projections are now expected to be slightly lower than last season. For next season farmers are able to position cows to have better conditioning, along with allowing pastures to be in better shape.
Australian milk production is declining due to the impact of weather, feed costs and time of season and trending lower than a year ago levels. There are concerns about getting the herds and pastures in shape for next season.
- New Zealand: +2,67 % (Jun 12 - Mar 13 vs. Jun 11 - Mar 12)
- Australia: -1,64 % (Jul 12 - Mar 13 vs. Jul 11 - Mar 12)
BUTTER (82%): lower prices from prior period; moderate demand; light offerings volumes of butter 82% and AMF.
CHEDDAR CHEESE: stable prices; moderate offerings; demand light to fair.
SMP: lower prices; demand has backed off but the questions remain on current availability of additional powder and what demand has been idled because of the pricing levels; the gap between NZ medium heat SMP price and US and European SMP continues to narrow.
WMP: lower prices; supplies are light and are expected to remain tight into the news season; demand slowed at the higher prices; some questions remain open: has the market reached the top? Did the fact the May 1 holidays in several countries stifle normal demand? Have buyers reached to other countries for supplies?
Dairy product prices are lower than recent high levels. Demand became more uneven as the pricing levels reached higher points and buyers were reluctant to be in the market at the high prices.
Any concerns about Chinese import restrictions are generally being allayed.
Note: · Assessments about market trend are expressed in US$;
· * Dairy season: July, 1st - June, 30th (Australia), June, 1st - May, 31st (New Zealand)