New Zealand Milk Production Update – Mar ’20
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Feb ’20. Highlights from the updated report include:
- New Zealand milk production volumes declined on a YOY basis for the fifth time in the past six months during Feb ’20, finishing down 3.4%. Production on a milk-solids basis finished lower on a YOY basis for the first time in the past four months, declining by 1.8%.
- Fonterra’s current ’19-’20 farmgate milk price forecast of $7.00-$7.60/kgMS was raised by an average of $0.25/kgMS, or 3.5%, in Dec ’19 and is on pace to reach a six year high at the midpoint of the forecast. Fonterra reaffirmed the price forecast in Mar ’20.
- New Zealand cow & heifer slaughter rates increased 4.5% on a YOY basis during Feb ’20 when normalizing for slaughter days, finishing higher on a YOY basis for the eighth consecutive month.