America and New Zealand are very focused on the market

Exports of cheese (454 thousand tons, +12.1%) are the first places with Mexico, South Korea, Japan and Australia, and butter (82,463 tons, +43.2%) will grow.

Performance of fat-enriched milk powder exports (skimmed milk powder and vegetable fats – SA 190190) was better with a total of 183,781 tonnes (+13.6%). This product is of interest to the “hot” countries of Africa and the Middle East, and the volume exported may increase further by adjusting to the falling price of palm oil. The price of FFMP is generally more competitive than whole milk powder (WMP), and it guarantees greater resistance to high temperatures.

On the other hand, 2022 was a tough year for New Zealand’s milk exports, with demand from key buyer China slowing.

Exports of LPE (1,335,116 tons, -17.5%) suffered the most, with volumes to China down nearly 400 thousand tons, only partially offset by higher sales to other countries.

This recession has caused New Zealand to change its production strategies and move towards more LPD and butter production.

In fact, exports of skim milk powder have increased to countries in Southeast Asia and North Africa, allowing New Zealand to close 2022 with a 10% increase in sales compared to 2021.

Butter exports were positive (453,734 tons, +13.9%) mainly the result of two factors: growing demand in the Chinese market, a key destination for New Zealand butter, and competitive prices in world markets.

What to expect in the coming weeks?

The latest GlobalDairyTrade event (February 7) showed signs of an increase in the average selling price of +3.2%. Should this be taken as a sign of global demand recovery?…

The Milk Chain Observatory has observed that 3 million tonnes of exported products equates to 18 billion liters of milk at an average of 6 litres/kg. product (with conversion coefficients between 0 for whey and butter and 14 for hard cheeses, going up to 8 for whole powders and 11 for skim).

This accounts for 18% of the total milk production in the United States, which is about 100 billion liters of milk per year.

Translated by OCLA from the Clal.it newsletter by Mirco De Vicenzi