The latest figures from the Dairy Companies Association of New Zealand (DCANZ) show that milk collections in February were down 2.9% on last year, totalling 1.91m t.
This represents a 1.3% fall in the three-year average, but a 1.1% ahead of the five-year average.
For the first two months of this year, there were 4.32 m t collected, which is a 1.7% fall on last year.
Collections for the New Zealand season, which runs from June to February, is down almost 3%, standing at 17.18 m t.
Milk solids on the up
Milk solids, however, recorded growth in February. Allowing for the extra day in February 2016, milk solids were 3.3% ahead of last year at 171.17m kgMS, with improved weather and good grass growth causing the rise.
It comes four months after a 6.2% fall in October, which is New Zealand’s peak milk producing month, as heavy rainfall halted spring grass growth.
This increase puts milk solid collections 0.39% ahead of the three-year average for the month.
For the season, collections now stands at 1,445m kgMS, which is a 2.6% decline on last season and the smallest deficit recorded since September.
Meanwhile, Fonterra, the world’s largest dairy exporter which is based in New Zealand, announced last week a 5% increase in revenue, rising to $9.2bn. It ended the first half of its 2017 financial year with net profit after tax up 2%, reaching $418m.
Australia also seeing declines
Elsewhere, Australia also recorded further falls in milk collections last month, dropping 10% to 625.6kt. A decline was also seen in January, with a fall of almost 6%. Collections from July, which is the beginning of the season in Australia now total 6.55m t, down 8.38% on the 7.15m t collected by the same point last season.
In the European market, however, milk production is expected to continue expanding this year, rising 0.6% above 2016 levels.