Australian milk intake down 11% in January as Dairy Australia reports milk collections in Nth Vic were 27% lower on the same month in 2018 (16% for the season to date). Gippsland was 11% down (3.7% for the season), and overall Victorian intake was down 14% for January. NSW production was down 11.9% for the month, while South Australia dipped below the comparative by 2.2% and Tasmania remained the only growth zone, up 2% in the month.
Norco lifts price – Norco has lifted its milk price 6.5c/l for the three months starting April with a price revision expected in June for the year ahead.
Parmalat promises simpler pricing – Parmalat has promised a simplified milk pricing structure for Victorian suppliers after increasing the current season milk price by 10c to $6.20kgMS.
Dry hits NZ farmers – Dry weather throughout much of the NZ is having a major impact on farm decision-making. Water shortages and tough restrictions are leading to de-stocking and farmers are using more supplementary feed than they usually would. Rain is expected across NZ this week, however, DairyNZ estimates between 70 and 130mm are needed to fill the current soil moisture deficit.
US production ahead 0.9% – January milk production was up 0.9% over the same month last year according to USDA, the increase purely down to improved yields per cow, with an estimated 83,000 fewer cows in production in the month.
EU collections continue to improve as European weather continued to be mild and warmer than normal further to the east of the bloc with an estimated gain in collections of 0.5% in the last week of February. Meanwhile, Irish milk collections hit a wall in January as bad weather impacted, limiting the growth in milk intake to 0.3%.
US exports disappoint – December US dairy exports data show trade volumes down across the board compared to a year earlier. NFDM/SMP exports were 4% lower for the final quarter, but 18% ahead for the full year. Total cheese exports were a better story, rising 6.6% in December, while whey exports dropped 35% YOY. Exports of butter was down 18%, while AMF was down 47%.
Another Brexit defeat increases turmoil as British PM Theresa May suffers another major defeat by 149 votes as she put her latest Brexit deal to a vote in Parliament. The PM now intends to call a vote in Parliament on whether to accept a no-deal outcome (due 13 March UK time) or delay Brexit (due 14 March).
Spot commodity milk value = $6.30/kgms
Commodity prices in export markets