New Zealand Milk Production Update – Jun ’20
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through May ’20. Highlights from the updated report include:
- New Zealand milk production volumes increased on a YOY basis for the first time in the past six months during May ’20, finishing up 4.3% and reaching a record high seasonal level. Production on a milk-solids basis increased 3.8%, also reaching a record high seasonal level.
- Fonterra announced an opening ’20-’21 farmgate milk price forecast of $5.40-$6.90/kgMS during May ’20, with the wide range reflecting the heightened uncertainty surrounding the COVID-19 outlook. The opening price range was 50% larger than the previous year opening price forecast.
- New Zealand cow & heifer slaughter rates declined 4.9% on a YOY basis during Apr ’20 when normalizing for slaughter days, finishing lower on a YOY basis for the second consecutive month.