A study on the performance of the Australian dairy industry, conducted by the ACCC (Australian Competition & Consumer Commission), revealed imbalances at each level of the dairy supply chain, in particular a strong bargaining power imbalance and information asymmetry in farmer-processor relationships. The ACCC therefore recommends that the Australian Government introduces a mandatory code of conduct to apply to dairy processors.

In New Zealand the farming conditions improved and contributed to April 2018 milk production being +2.9%from April last year. June 2017-April 2018 milk production in New Zealand is -0.1% over one year earlier.

New Zealand’s Fonterra increased its farmgate milk price forecast for the 2017−18 season by 0.20 NZD to6.75 NZD/kgMS. Converted into milk, the price is 29.67 €/100 kg of milk fat and 3.4% protein mass/mass (ref.Germany, current change of reference: 1 NZD = 0.5940 €).

Fonterra announced an opening forecast farmgate milk price for the coming 2018−19 season of 7.00 NZD/kgMS and expects a milk collection +1.5% than the current forecast for the season about to end.

Almost all current dairy processing is focused on making WMP, which is the most profitable product focus. WMP price is slightly increasing.

Butter availability in Oceania is getting tighter. Prices firmed and price trends are following butter strength in Western Europe.

SMP price has strengthened further, reaching the highest during 2018. There is little SMP being currently manufactured in Oceania and recent SMP buying interest has been robust.

Cheddar prices in Oceania are stronger and demand is quite strong.

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