MD_DA124

     Butter/Butteroil - Oceania

     Report 3 - Released on January 17, 2019

     Butter prices in Oceania are stronger. Few are surprised considering lower milk and cream
     supplies will be available in coming weeks and months. Regional butter production is steady
     to slightly lower. Early year demand is active. Buyers are seeking butter and they are
     looking a bit harder to get it.

     Australia was a net importer of butter through November 2018. New Zealand was the primary
     source of butter imports, multiples higher than other sources. No single country stood out
     as the primary destination for Australian butter exports. Exports were about 40 percent of
     imports.

     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,125 - 4,300


     Information for the period January 7 - 18, 2019, issued biweekly

     Secondary Sourced Information:

     Butter exports from Australia January-November 2018 were up 3.2 percent from January-
     November 2017, according to CLAL. The table below shows the top export destinations and
     country percent change comparing January-November 2018 with 2017.

      Australia Butter Exports

                      % Change
     Destination      Jan.-Nov. 2018/2017
     Thailand         +18.1
     China             -6.3
     Malaysia         +36.5
     Singapore         +4.2
     Hong Kong        +15.2

     Butter imports to Australia January-November 2018 were up 21.6 percent from January-November
     2017, according to CLAL. The table below shows the top import origins and country percent
     change comparing January-November 2018 with 2017. Imports from New Zealand are nearly nine
     times greater than total combined imports from the other listed countries.

     Australia Butter Imports

                      % Change
     Origin           Jan.-Nov. 2018/2017
     New Zealand      +22.2
     United Kingdom   -80.0
     France          +155.0
     Denmark          +12.0
     India           +126.0
     Ireland          +56.6

     Butter imports by China January-November 2018 increased 30.3 percent from January-November
     2017, according to CLAL. New Zealand overwhelmingly dominates the top sources, supplying
     nearly ten times more butter to China than the next six countries shown in the table below
     combined. The table below shows the top import origins and country percent change comparing
     January-November 2018 with 2017.

     China Butter Imports

                      % Change

     Origin           Jan.-Nov. 2018/2017
     New Zealand      +35.8
     France            -9.6
     Belgium          -24.3
     Australia         -4.2
     Netherlands      -29.7
     Germany          +60.5
     Ireland           +9.3



     Butter imports by Japan January-November 2018 increased 90.7 percent from January-November
     2017, according to CLAL. New Zealand dominates the top ten sources, supplying more butter to
     Japan than the next nine countries combined. The table below shows the top import origins
     and country percent change comparing January-November 2018 with 2017.

         Japan Butter Imports

                      % Change
     Origin           Jan.-Nov. 2018/2017
     New Zealand        +132.0
     Netherlands         +42.2
     Germany             +56.4
     France              +39.7
     Belgium             -63.2

     At GDT event 228 on January 15, the butter all contracts price, $4,262, increased 4.6
     percent. The February contract price, $4,270, increased 1.8 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: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home