14 May 2018
The Australian dairy export index edged higher this week, solely the result of a slightly weaker Australian dollar.
In average spot quotes from Australasian exporters, all product prices were unchanged from the prior week. Average WMP was quoted at US$3,300/t for the fourth consecutive week, while SMP was unchanged at US$2,200/t. Cheddar and butter prices were also steady at US$3,925/t and US$5,665/t respectively.
The Australian dollar again ended the week weaker at US$0.7540, despite rallying strong on Thursday supported by a soft US inflation April report.
These factors combined to add 0.1 points to the index, which now stands at 198.1. The weekly spot commodity milk value for southern Australian dairy manufacturers rose 0.3c/kgMS to $5.63/kgMS.
Take Note: – The index is an indicator of spot trends in gross export returns to the Australian dairy industry based on quoted Australasian dairy commodity export spot prices, movements in currency and the mix of total milk usage in product exports by the Australian industry.
This index was set at 100 on 1 January 2000.
The commodity milk value (CMV) is an estimate of milk value based on spot prices for key commodities and the average industry product mix, net of costs. Between 2011/12 and 2016/17 the CMV has averaged over 80% of final farmgate returns – ranging between 70% and 95% of the final average price paid by manufacturers in southern Australia. For more information on the CMV calculation please visit this page.