12 November 2018
The Australian dairy export index fell for the fifth consecutive week, after another gain in the Australian dollar compounding the impact of weaker milk powder prices.
In average spot quotes from Australasian exporters, SMP quotes fell US$20/t from the prior week to US$2,000/t. WMP prices also dropped, down US$50/t from the prior week to US$2,675/t – in line with trends at last week’s GDT event. Butter and cheddar prices were unchanged from the prior week at US$4,300/t and US$3,550/t respectively.
The Australian dollar ended the week higher at US$0.7244 – driven by stronger global risk sentiment early in the week, US mid-term elections results, and stronger-than-expected Chinese October exports data.
The net effect of these movements shaved another 1.7 points off the index, pushing it lower to 182.4, a 37-week low. The weekly spot commodity milk value for southern Australian dairy manufacturers eased 7 cents to $4.97/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.
- Our work is packaged for specific audiences and decision- making requirements.
- Our presentation is highly visual –the most effective way to deliver messages to a target audience.
- We are a small, experienced team that offers agility in approach and response.
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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.
What is Global Dairy Directions?
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.