MD_DA124

     Butter/Butteroil - Oceania

     Report 7 - Released on February 14, 2019

     Butter prices in Oceania moved higher. Some observers believe prices are more likely to
     remain steady to higher, than to decline in coming months. Production volumes are
     anticipated to gradually decline while demand will remain good. Manufacturers are also
     producing to increase stocks for late season needs.

     Australia was a net importer of butter during 2018. New Zealand was the primary source of
     butter imports. No single country stood out as the primary destination for Australian butter
     exports.

     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,425 - 4,525


     Information for the period February 4 - 15, 2019, issued biweekly

     Secondary Sourced Information:

     Butter exports from Australia during 2018, 16 million MT, were up 1.6 percent from 2017,
     according to CLAL. The table below shows the top export destinations and country percent
     change comparing 2018 with 2017.

      Australia Butter Exports

                      % Change
                      Jan. ± Dec.
     Destination      2018/2017
     Thailand         +24.4
     Malaysia         +27.5
     China             -9.2
     Singapore         +6.0
     Hong Kong         +3.6

     Butter imports to Australia during 2018, 40,000 MT, were up 17.5 percent from 2017,
     according to CLAL. The table below shows the top import origins and country percent change
     comparing 2018 with 2017.

     Australia Butter Imports

                      % Change
                      Jan. ± Dec.
     Origin          2018/2017
     New Zealand     +18.8
     France          +74.8
     India           +99.6

      New Zealand 2018 butter production, 530,000 MT, increased 1.0 percent from 2017 according
     to CLAL and FAS-USDA.


     Butter exports from New Zealand during 2018, 459,000 MT, were up 5.7 percent from 2017,
     according to CLAL. The table below shows the top export destinations and country percent
     change comparing 2018 with 2017.

      New Zealand Butter Exports

                      % Change
                      Jan. ± Dec.

     Destination      2018/2017
     China            +20.1
     Australia        +25.3
     Philippines       +2.2
     Saudi Arabia      -1.6
     Mexico            -9.7

      At GDT event 229 on February 6, the butter all contracts price, $4,445, increased 4.2
     percent. The March contract, $4,490, increased 5.2 percent.
     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home