A decidedly negative period for two of the major Countries in Oceania, Australia and New Zealand. In Australia, Murray Goulburn, one of the major Australian milk processing companies, keeps reporting financial losses referred to the period July – December 2016, in view of a 5% decrease in collected milk (source: clal.it)
In New Zealand, Fonterra amended its forecast for what regards collected milk during the agriculture season ending May 31, passing from a -7% to a “better” -5 presents on the previous agricultural season. Payout for prices at the stable that was forecast this last November has been confirmed (around €4/kg; data clal.it).
The decrease in milk production, in the second semester 2016 in Australia amounted to 8.55% compared to the same period of the previous year; in New Zealand, between June 2016 and January 2016, the decrease has been decidedly less severe (-2,61%).
Prices of derivative products in Oceania
As for prices of derivative products in Oceania, process for butter are on the rise, and they have reached their maximum point. This increase was expected due to limited availability of fat matter in the area. Australia dealers prefer to supply those customers who purchase bigger quantities and on longer terms. This fact contributed to lower Australian export of butter, unlike New Zealand which, thanks to a definitely smaller population to satisfy, could increase its sales to the foreign market.
Cheddar cheese prices are slightly decreasing, but the market is expected to stabilize soon. Meanwhile, internal demand for this kind of cheese in Australia is still on the rise.
For what concerns prices of milks in powdered form, price of skimmed milk is slightly increasing, with a market focused on the short-term. Maximum prices for powdered whole milk are slightly decreasing, this situation is probably due to the fact that some potential buyers have slowed down their purchases and some European competitor producers have intensified their efforts in order to penetrate international markets with competitive prices.