New Zealand Milk Production Update – Dec ’20
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Nov ’20. Highlights from the updated report include:
- New Zealand milk production volumes declined 2.5% on a YOY basis during Nov ’20, finishing lower on a YOY basis for the first time in the past seven months and reaching a four year low seasonal level.
- Fonterra’s ’20-’21 farmgate milk price forecast of $6.70-$7.30/kgMS was revised $0.40/kgMS higher at the bottom end of the forecast range throughout Dec ’20 on continued strong Chinese demand. The ’20-’21 farmgate milk price forecast remains slightly below the six year high level experienced throughout the previous production season at the midpoint of the estimate, however.
- New Zealand cow & heifer slaughter rates increased 13.0% on a YOY basis during Nov ’20 when normalizing for slaughter days, finishing higher for the fifth time in the past six months and reaching a record high seasonal level.