Commodity milk value
22 November 2021
The spot commodity milk value increased this week, the result of stronger commodity prices and a weaker Australian dollar.
In spot quotes from Australasian exporters, cheddar prices rose US$150/t from the prior week to US$5,000/t. Butter also increased US$150/t from the prior week to US$5,480/t. SMP was also stronger, up US$40/t from the prior week to US$3,690/t. WMP was unchanged at US$4,000/t.
The Australian dollar was weaker, ending the week at US72.3c, reflecting strength in the US dollar (on the back of strong retail sales data and hawkish comments by the FED) and disappointing local wages data.
The combined impact of these changes lifted the commodity milk value for southern Australian dairy manufacturers by 41 cents to $8.28/kgms.
The spot commodity milk value (CMV) is updated weekly as an estimate of milk value based on weekly spot prices for key commodities and the average industry product mix, converted to Australian dollar, net of costs.
Between 2011/12 and 2018/19 the CMV has averaged over 80% of final farmgate returns – ranging between 70% and 95% of the final average price paid by manufacturers in southern Australia. For more information on the CMV calculation please visit this page.