New Zealand Milk Production Update – Aug ’20
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Jul ’20. Highlights from the updated report include:
- Jul ’20 New Zealand milk production volumes remained near seasonal lows but reached a record high seasonal level for the third consecutive month, finishing up 4.4% YOY.
- 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 ’20-’21 farmgate milk price forecast was revised $0.50/kgMS higher on the low end of the range during Jul ’20 while remaining unchanged on the high end of the price range.
- New Zealand cow & heifer slaughter rates increased 14.0% on a YOY basis during Jul ’20 when normalizing for slaughter days, reaching a 34 year high seasonal level.