CLAL - Australia: dairy sector

NEWS from OCEANIA: dairy market n° 11/2013
(27 May-7 June 2013) source: USDA

MILK PRODUCTION

New Zealand milk production is slowing as the calendar enters the winter season with output levels below a year ago. Pasture conditions are expected to improve with reseeding growth developing. Farmers are optimistic for the next season due to the higher milk payments which are the result of recent higher prices of finished dairy products.
Australian milk production trends remain below a year ago level. Next season's pastures and crops benefit from recent rainfall. Recent currency devaluations would factor into allowing for increased milk pricing.

New Zealand *: +2,67 % (Jun 12 - Mar 13 vs. Jun 11 - Mar 12)

Australia *: -2,29 % (Jul 12 - Apr 13 vs. Jul 11 - Apr 12)

BUTTER (82%): lower prices from the past period; weak undertone; slow market activity and international demand; limited butter output.

CHEDDAR CHEESE: unsettled market undertone; stable production; shipments are moving on schedule.

SMP: lower prices from the April highs; tight SMP supplies from Oceania sources, but offerings are available from other supplying countries; slow market activity; light stocks.

WMP: further lower prices; low buyer interest and slow market activity; other countries are supplying WMP needs.

Domestic dairy product production and demand are stable with prices lower than recent high levels. Offerings volumes from Oceania sources are light.

Note: · Assessments about market trend are expressed in US$;
· * Dairy season: July, 1st - June, 30th (Australia), June, 1st - May, 31st (New Zealand)

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Australia: dairy sector

This page contains data regarding key components of the Australian dairy industry over a given time period.

The purpose of this report is two-fold:

on the one hand, it describes the products that this industry produces, including commodities and various derivatives (butter, concentrated butter, cheese, milk powder, whey powder, casein, etc.);

on the other hand, it shows the overall exports of processed products - due to surplus production in relation to the population.

AUSTRALIA Dairy Season: July 1^st - April 30^th
'000 Ton	2008/09	2009/10	2010/11	2011/12	2012/13

Raw material area
Number of cows ('000 head)	1.676	1.596	1.589	1.630
Deliveries to dairies	9.388	9.024	9.100	9.480
± % from previous year		-3,9%	+0,9%	+4,2%

Dairy Production	MOVING AVERAGE of produced VOLUMES in Australia
Liquid milk (Mio Liters)	2.229	2.269	2.316	2.386
Butter	94	83	79	82
± % from previous year		-11,4%	-4,7%	+3,9%
Cheese	325	330	314	325
± % form previous year		+1,6%	-4,9%	+3,7%
of which Cheddar cheese	178	164	155	161
WMP (whole milk powder)	148	126	151	140
± % form previous year		-14,6%	+20,0%	-7,2%
SMP (skimmed milk powder)	212	190	222	230
± % form previous year		-10,3%	+17,0%	+3,5%
Casein	10,0	8,0	5,0	5,0
Whey powder	81	79	61	65
± % form previous year		-2,5%	-22,3%	+5,1%

Export *	2008	2009	2010	2011	2012
bulk and packaged milk (HS 040110+040120)	54	61	67	79	83
Butter (HS 0405)	47,5	83	57	41,4	53
Cheese (HS 0406)	158	162	160	168	163
WMP (whole milk powder - HS 040221+040229)	141	133	115	116	109
± % from previous year		-5,3%	-14,1%	+1,4%	-6,1%
SMP (skimmed milk powder - HS 040210)	126	167	132	140	168
± % from previous year		+33,3%	-21,2%	+6,0%	+19,8%
Whey powder (HS 0404)	60	63	40,5	30,5	44,3
± % from previous year		+5,3%	-35,9%	-24,6%	+44,9%
Caseinates (HS 350190)	4,9	5,3	5,1	4,1	3,5
Lactose pharmaceutical (HS 170211)	19,9	7,5	12,9	10,2	10,4
Lactose edible (HS 170219)	0,2	1,4	10,7	12,5	13,3

Import *	2008	2009	2010	2011	2012
bulk and packaged milk (HS 040110+040120)	4,4	5,3	9,8	7,2	2,8
Butter (HS 0405)	19,3	17,6	18,7	18,3	20,8
Cheese (HS 0406)	68	65	76	72	75
of which from European Union	11,3	11,0	12,0	14,8	15,9
of which from New Zealand	46,2	51	55	46,7	44,9
WMP (whole milk powder - HS 040221+040229)	7,9	8,2	9,1	13,2	8,6
SMP (skimmed milk powder - HS 040210)	4,3	4,6	4,5	4,6	3,0
Whey powder (HS 0404)	10,6	13,1	14,9	14,9	12,5
Lactose pharmaceutical (HS 170211)	7,5	11,0	10,7	11,8	7,5
Lactose edible (HS 170219)	2,7	2,2	3,1	5,1	5,4

Per capita consumption (kg) *	2008	2009	2010	2011	2012
Milk	102,49	103,73	102,57	106,96	107,07
Cheese	13,15	13,10	12,89	11,28	11,39
Butter	2,97	2,74	3,28	3,45	3,58
SMP	2,28	2,28	2,29	3,01	3,05
WMP	1,25	1,28	2,02	1,77	1,83

*	2008	2009	2010	2011	2012

Population ('000)	21.514	21.902	22.268	22.606	22.919

* Dairy Season: January 1^st - December 30^th
Source Raw material area: Dairy Australia
Source Dairy production: Dairy Australia, ABARE
Source Export: GTIS;
Source Import: GTIS
Source Population: FAO

Last update: 2013-06-18

Show/Hide Main Purchasing Countries of SMP

Market News Italy

In aumento	I - Provolone Valp. Cheese - Production	+9,53%
In aumento	I -Verona, foreign Whole Spot milk price	+3,53%
In aumento	I - Verona, foreign Skim Spot milk price	+5,26%
In aumento	I - Verona, Spot milk price	+2,33%
In aumento	I - Quartirolo Lomb. Cheese - Production	+1,61%
In aumento	I - Milan, Milk cream price	+1,98%
In calo	I - Milan, Parm Reg. up to 24 mo. price	-0,87%
In calo	I - Milan, Parm Regg 12 months price	-0,56%

Market News Europe

In calo	D - Kempten, Emmentaler price	-3,51%
In aumento	D - Kempten, "Markenbutter" price	+1,20%
In calo	D - Sweet Whey, food quality price	-0,92%
In calo	France - Whey Powder price	-1,64%
In aumento	France - Poudre 0%, Humaine - (SMP)	+1,62%
In aumento	France - Butter 82% price	+0,09%
In aumento	Netherlands - Spot milk price 4,4% fat	+5,00%
In aumento	Poland - Edam 42% price	+1,09%

Market News World

In aumento	US - Cow's milk production	+0,80%
In aumento	Malaysia - Palm oil price	+0,93%
In calo	New Zealand - Milk Production	-34,48%
In aumento	US -Whey Protein Concentrate (34%) price	+0,20%
In aumento	US - Nonfat Dry Milk Price	+0,29%
In calo	US - Cheese 40 # Blochs price	-1,43%
In calo	US - Butter, Grade AA price	-0,65%
In calo	Ukraine - Milk production	-0,45%