MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  February 16, 2017 (REPORT 7)                       

OCEANIA                                                          
INFORMATION GATHERED  02/06/2017 - 02/17/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:   
Butter prices in Oceania firmed this week. In New Zealand, fats 
are said to be in short supply, allowing butter processors to 
demand and receive a premium. In Australia, butter is considered 
to yield the best return among manufactured dairy products. 
Another factor in Australia is that domestic consumption 
continues to challenge the ability of manufacturers to keep up 
with demand. The largest buyers have the best leverage to lock 
in supplies further ahead. Smaller buyers continue to buy week 
to week, often driving the high end of the price range to secure 
supplies of butter. December 2016 butter production in 
Australia, 6,648 MT, is down 20.3% from December 2015, according 
to Dairy Australia. July-December 2016 production, 41,552 MT, is 
down 13.0% from the same period of 2015. December 2016 butteroil 
production in Australia, 981 MT, is down 46.2% from December 
2015. July-December 2016 production, 7,002 MT, is down 29.7% 
from the same period of 2015. Butter exports from Australia from 
July-December 2016, 8,754 MT, were 10.8% lower than the same 
period of 2015, according to Dairy Australia. The value of 2016 
exports was 14.8% lower than for 2015 exports. The Dairy Market 
News International Monthly Summary and Averages for Oceania 
Butter in January, 2017, was $4,416, up from $3,052 one year 
earlier. At GDT event 181 on February 7, the all contracts price 
for butter was $4,593, up 4.9%.
                                                               
82% BUTTERFAT:                           4,400 - 4,600           
0930c eric.graf@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home