Global Market Updates
Milk from Australian dairy farms are made into products that are sold locally and in countries around the world. Understanding what is happening in all these markets will provide an insight to important trends that strongly influence Southern Region farmgate milk prices. Keep up to date with the latest global dairy market developments
Fonterra payout increased
Fonterra New Zealand has lifted its forecast farmgate milk price range by NZ30c to NZ$7.30kgMS—NZ$8.30kgMS, bringing the midpoint to NZ$7.80kgMS following five strong GDT events. Fonterra’s forecast earning guidance for FY24 of NZ50c—NZ65c remains unchanged. CEO...
Prices rise for the 5th consecutive GDT
The GDT price index rose again this week, recording the biggest improvement in this 5-event rally of 4.2%. SMP posted it’s best price gain in four month, with prices rising 4.6% to average US$2,758/t. With EU product facing Red Sea issues, and limited availability,...
US cheese output marginally higher in December
US cheese production rose 0.9% YOY in December according to the USDA, compared to an estimated 0.4% decline in the availability of “manufacturing milk.” American cheese output rose 0.5% YOY for the month (with a 2% decline for cheddar) while “other cheese” (including...
US milk production down in December
US milk production fell 0.3% YOY in December according to the USDA, mostly reflecting a continued decline in the dairy herd. December average yield per cow was up 0.1% YOY while cow numbers were down 0.4%. At 9,357m, December cow numbers were down 1,000 head on the...
Pulse up slightly
This week’s Pulse event delivered a slight rise in prices with regular grade WMP settling at US$3,270/t, up US$20/t from the C2 price at last week’s GDT. Futures markets were more optimistic, the nearest SGX-NZX WMP futures contract (February 2024) settled at...
WMP down, SMP up on Pulse
WMP eased slightly at this week’s Pulse auction to average US$3,263/t. Regular grade WMP was down US$20/t at the Pulse auction compared to last week’s GDT event to settle at US$3,250/t, US$40/t higher than the prior Pulse auction. The nearest SGX-NZX WMP futures...
NZ December milk lifts
December milk output rose 2.6% YOY on a solids basis, marking the fourth consecutive monthly year-on-year increase in milk production, according to the latest data from DCANZ. December output lifted 0.9% YOY on a volume basis. The lift in December reflected improved...
GDT books 2.3% price increase
GDT event #348 resulted in price increases across the commodity board with the exception of new kid on the block mozzarella. WMP prices rose 1.9% to average US$3,353/t, with good involvement from Middle Eastern buyers. SMP prices rose 1% to US$2,638/t following price...
EU milk declines
German milk supplies fell for the 12th consecutive time in week 1 (ending 6 January 2024) - down 1.4% YOY. French supplies were down 1.8% in that same week while UK’s rose 0.3%. According to Eurostat, November production was down 19.8% YOY in Ireland and 4.8% lower in...
US milk production down in November
US milk production fell 0.6% YOY in November according to the USDA, mostly reflecting a continuing decline in the dairy herd. In YOY terms, November yield per cow was down 0.1% YOY on average, while cow numbers were down 0.5%. At 9,360m, November cow numbers were...