New Zealand Milk Production Update – Aug ’18
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Jul ’18. Highlights from the updated report include:
- Jul ’18 New Zealand milk production volumes remained near seasonal low levels but finished higher on a YOY basis for the fourth consecutive month, increasing 5.6% to a new record seasonal high for the month of July. June and July production volumes typically combine to account for less than two percent of annual volumes.
- Fonterra’s ’17-’18 farmgate milk price forecast was reduced slightly to $6.70/kgMS during Aug ’18 but remained at a four year high level. Fonterra’s announced ’18-’19 opening farmgate milk price forecast of $7.00/kgMS is on pace to reach a five year high.
- Jun ’18 New Zealand cow & heifer slaughter rates finished up 18.1% YOY when normalizing for slaughter days, reaching a record seasonal high for the month of June. New Zealand slaughter is expected to remain at elevated levels throughout coming months as Mycoplasma bovis is eradicated from approximately 150,000 cows.