New Zealand Milk Production Update – Aug ’19
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Jul ’19. Highlights from the updated report include:
- Jul ’19 New Zealand milk production volumes remained near seasonal low levels but finished higher on a YOY basis for the second consecutive month, increasing 4.6% to a record high seasonal level.
- Fonterra’s ’18-’19 farmgate milk price forecast of $6.30-$6.40/kgMS is expected to finish below the four year high levels experienced throughout the previous production season. The midpoint of Fonterra’s ’19-’20 opening farmgate milk price forecast of $6.25-$7.25/kgMS would be a six year high, however, as demand is expected to remain strong across key trading partners.
- Jul ’19 New Zealand cow & heifer slaughter rates increased 10.7% YOY when normalizing for slaughter day, reaching a 15 year seasonal high level for the month of July. The Jul ’19 YOY increase in slaughter rates was the first experienced throughout the past four months.