What we're seeing - 28 March 2018
This week we’re highlighting some key aspects of global dairy trade with the release of our latest Trade Insights Monthly report. Global dairy trade is ticking over, not growing strongly overall, but with some interesting product and regional trends.
New Zealand WMP exports have increased strongly in the latest quarter, but China & HK isn’t the driver – having bought strongly in late 2017. Instead its buyers in price sensitive regions of Middle East and North Africa and south east Asia that took advantage of a dip in values in 2017 which is now being delivered. New Zealand cheese exports have been lower for year-on-year for the past seven months.
Watch the video for some more insights on importing regions and other stuff.
Chart of the week
We developed a new measure of global dairy trade – milk solids equivalent (MSE). It highlights how much fat and protein is being traded around the world. In 2017, global dairy trade was flat in MSE terms, with protein trade well up with greater SMP availability, which was almost completely offset by declining fat trade – reflecting chronic butter shortages. In the first month of 2018, both protein and fat were slightly up year on year – with overall trade up 1.2%.
With cheddar prices likely to come under increasing pressure as the EU heads toward its peak spring production, there doesn’t appear to be a lot of upside for the CMV for the remainder of 2017/18.
This is our take on what’s happening in Australian, New Zealand and global dairy markets based on our weekly Dairyglobe newsletter. Interested in subscribing to the Dairyglobe? Contact our office on email@example.com or +613 8414 0904 or read more here!