New Zealand Milk Production Update – May ’20
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Apr ’20. Highlights from the updated report include:
- New Zealand milk production volumes declined on a YOY basis for the seventh time in the past eight months during Apr ’20, finishing down 0.6%. Production on a milk-solids basis declined on a YOY basis for the second time in the past three months, finishing down 0.8%.
- Fonterra announced an opening ’20-’21 farmgate milk price forecast of $5.40-$6.90/kgMS, 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.