18 November 2019
The Australian dairy export index increased this week, the result of stronger commodity prices and a weaker Australian dollar.
In spot quotes from Australasian exporters, Cheddar prices rose US$100/t from the previous week to US$3,900/t. WMP prices were also higher – up US$50/t from the prior week at US$3,300/t. Butter rose US$10/t from the previous week to US$4,180/t. SMP prices were unchanged at US$2,940/t.
The Australian dollar lost ground against the greenback, ending the week at US$0.6790, reflecting a local labour market weakness and US-China trade outlook uncertainty.
The combined effect of these changes lifted the index by 7.2 points to 225.2, a 24-week high. Since January 2000, the index has only been higher than this level only 4.5% of the time – that’s 46 weeks out of more than 1,030!
The weekly spot commodity milk value (CMV) for southern Australian dairy manufacturers rose 29 cents to A$6.66/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.
Freshagenda’s Australian Dairy Export Index is an indicator of spot trends in gross export returns to the Australian dairy industry calculated by Freshagenda
The Australian Dairy Export Index is an indicator of average spot quotes from Australian exporters and in one of many ways specialist food industry consultants Freshagenda monitor developments in Australia and global dairy markets.
What sets us apart as specialist food industry consultants?
- We have a working commercial understanding of the dynamics affecting key agrifood sectors and supply chains.
- We analyse and interpret supply chain drivers and trends from farm to consumer, both domestic and international.
- We maintain an ongoing watch on major developments and global change agendas that impact the food industry.
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Our strength lies in our unique big picture perspective – a “whole of chain” approach. The engagement spans from farm inputs through to detailed retail and consumer insights – including analyses at the category and sector levels such as interpreting performance of market segments and food categories.
Freshagenda have a track record of assisting decision makers assign priorities and direct policy based on the relative size of segments and pressure points affecting their value chains, and have delivered a number of consulting services and analysis to industry, government and corporate clients.
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A forward looking tool that allows dairy companies, brokers, traders and processors to project the outcome of future scenarios in global and local dairy markets based on variable key assumptions.
Built in Microsoft Excel, our Global Dairy Directions platform uses historical data along with a big set of macros, allowing users to run queries, test scenarios and project future possible outcomes in their part of the dairy industry. It spans the globe as it contains data from key dairying regions all over the world and thus can be used as a tool to help navigate strategic planning at management level.
We include trade data from South America, the US, Europe, New Zealand and Australia as well as other emerging regions. We rely on different sources for our data, including Global Trade Tracker which provides us with up-to-date data, so our clients always have the latest available data at their hands.