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Drought and Shortage Effects Shown in Report

22 April 2013

GLOBAL - New Zealand milk production fell for the first time in two years in February and following weeks of considerable jumps in value, the Trade weighted index grew 0.6 per cent this week, says Dairy Australia.

New Zealand

Skimmed Milk Powder remains US$1000/t more expensive than in the US and EU. This is accompanied by the confirmation of a 2.6 per cent fall in New Zealand’s milk output for February.

However, a 3.2 per cent drop in SMP values has reduced Australian and New Zealand premiums obtained for Fonterra SMP as Arla and Dairy America reported recent gains.

The current season is not expected to get recover due to herd dry-offs, despite local reports of some rain in drought areas.

European Union

Danone has ‘confirmed requests’to restrict selling of its infant formula products to two tins per purchase. There is evidence to suggest that Tesco, Sainsbury’s Asda and Morrisons head several a collection of several other retailers who will do the same.

The exports picture sees milk powder shipments staying below 2012 levels although butter exports are higher.

Strong growth in EU cheese exports has been driven by Russian buying. This is according to Eurostat who indicate volumes lifting 12 per cent for the first two months.

South Korean and US demand spikes contributed shipments of fresh cheese increasing by over a quarter.

TheCattleSite News Desk

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