NEWS from OCEANIA: dairy market n° 5/2014
(17 - 28 February, 2014) source: USDA
AUSTRALIAN milk production has suffered from recent heat waves, however dairy producers are now looking to prolong this season supported by adequate water supplies, lower feed costs and higher milk prices.
Dairy Australia is forecasting milk production for the 2013/14 season to be flat to 2% lower compared to last season.
In NEW ZEALAND milk production areas are currently dry and needing rain to promote pasture growth. Strong global demand and good margins encourage producers to provide supplemental forage feeding to extend the milk production season.
- New Zealand *: +5,40% % (Jun - Dec 13 vs. Jun - Dec 12)
- Australia *: -2,16 % (Jul 13 - Jan 14 vs. Jul 12 - Jan 13)
BUTTER (82%): steady to firm prices; tight supplies with limited uncommitted volumes; good demand from many buyers looking for supplies in the northern hemisphere; Russian purchases have slowed but are continuing to record sales.
CHEDDAR CHEESE: stable prices with some weakness on the low end of the range; SMP and WMP markets are supporting the cheese market because without good returns for cheese manufacturers are inclined to make milk powder; production covers domestic demand needs and long term commitments
SMP: stable prices; limited supplies with most committed for Q1 and Q2; strong global demand with many buyers looking for supplies in the EU and US at competitive price levels.
WMP: stable prices with some decline on the low end of the range; tight supplies; active demand in particular from Mid-East and Southeast Asia.
SMP and WMP global demand remains strong whereas the product availability is very limited.
Note: · Assessments about market trend are expressed in US$;
· * Dairy season: July, 1st - June, 30th (Australia), June, 1st - May, 31st (New Zealand)