Brent crude oil prices pushed above $50/ba this week for the first time since July 2015, which is to be welcomed. A recovery in the oil price to anywhere above the $65/ba mark would boost the buying power of oil economies in the Middle East and Africa and should help revive demand.
Brent crude oil prices pushed above $50/ba this week for the first time since July 2015, which is to be welcomed.
A recovery in the oil price to anywhere above the $65/ba mark would boost the buying power of oil economies in the Middle East and Africa and should help revive demand.
Countries such as Algeria, Libya, Nigeria, Indonesia and Venezuela are all major importers of dairy powders and key to the global trade.
In the US, imports of dairy commodities continue to increase strongly, despite significant increases in domestic milk production.
In the year to the end of April, cheese imports are more than 23% ahead of last year at 67,000t, although in value terms, imports increased just 7% year-on-year, mirroring the downturn in prices.
Butter continues to be the real story of the US domestic market, with imports more than 50% ahead of last year to the end of April at nearly 19,000t.
Much of this is being sourced from Ireland, reflecting the strength of the Kerrygold brand in the US market.
Butter prices continue to hold their own in the US at almost $4,580/t, which is completely out of kilter with butter prices in other parts of the world.
For the past year, US butter quotes are nearly $2,000/t ahead of New Zealand prices and $1,700/t ahead of EU prices, as domestic butter consumption in the US continues to surge.
In New Zealand, exports of WMP and infant formula performed strongly for the month of April, increasing in volume terms by 25% and 109% respectively.
China remains the largest market for New Zealand milk powders, followed by the UAE and Algeria.
In value terms, New Zealand exports are still well behind, down 17% year-on-year, as market prices remain on the floor.
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