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.