Inside Milk
Fonterra is well in the milk, sales are disappointing
New Zealand and Australia have reduced dairy exports for the month of July, according to the monthly monthly report of the dairy company Fonterra. The milk processor has managed to collect considerably more milk in August.
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Fonterra collected more milk in August than last year. In New Zealand, 3,2% more milk was supplied. The supply from both the North Island and the South Island was 3,2% higher. In Australia, milk collection increased by 4,1%. The increase is a trend and has been reflected in the milk supply figures in Oceania for some time.
The higher supply is offset by lower export figures. New Zealand and Australia saw dairy exports decline in July, according to Fonterra's monthly report. In July, New Zealand exported a total of 6,1% less dairy than over the same period last year. Less dairy was also exported in Australia in July than last year. However, with a decrease of 1,4%, the decrease is less significant than in New Zealand.
China to the market
China, the largest dairy importer worldwide, managed to increase its dairy imports in July compared to last year. In total, 17,6% more dairy was imported. Dairy imports from Latin America, Asia and Africa also increased in June compared to last year. Dairy imports increased there by 20,4%, 13,7% and 1,4%.
However, the dairy sector in Oceania does not benefit from this. America, on the other hand, is benefiting from the increased (Chinese) demand. US dairy exports were up as much as 21,5% in July. The dairy sector in the US has known all year excellent export figures to realise.