Commodity milk value

 

18 October 2021

The Australian spot commodity milk value declined this week, alone the result of a stronger Australian dollar.

In spot quotes from Australasian exporters, WMP prices rose US$20/t from the prior week to US$3,800/t. Cheddar, SMP and butter were unchanged at US$4,400/t, US$3,350/t and US$4,920/t respectively.

The Australian dollar was stronger, ending the week at US74.2c, as COVID restrictions are easing locally, the DXY was softer and raw commodity prices are surging.

The combined impact of these changes pruned 15 cents from the commodity milk value for southern Australian dairy manufacturers to $6.81/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.