New Zealand Milk Production Update – Jun ’18
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through the end of the ’17-’18 production season. Highlights from the updated report include:
- May ’18 New Zealand milk production volumes increased on a YOY basis for the second consecutive month, finishing up 6.2% to a record seasonal high for the month of May. Overall, ’17-’18 annual New Zealand milk production volumes finished 0.1% above the three year lows experienced during the previous production season.
- Fonterra’s ’17-’18 farmgate milk price forecast was raised from $6.55/kgMS to $6.75/kgMS during May ’18 as global supply and demand continues to be positive for farmers. Fonterra also announced a ’18-’19 opening farmgate milk price forecast of $7.00/kgMS, which would be a five year high.
- Apr ’18 New Zealand cow & heifer slaughter rates increased 22.6% YOY when normalized for slaughter days, finishing higher on a YOY basis for the sixth time in the past seven months. New Zealand slaughter is expected to remain higher on a YOY basis in coming months as Mycoplasma bovis is eradicated from approximately 150,000 cows.