While Irish dairy farmers are in full swing and milk tanks are full, the opposite is the case for farmers in New Zealand.

The Kiwi dairy industry is at its quietest period right now during the winter months, with cows on almost all farms dried off.

New figures released this week by the New Zealand dairy industry (DCANZ) show that milk production in June was just 222m litres, which is up 2% on the same month last year. However, this is just a fraction of the milk production potential in New Zealand. By October, New Zealand milk collections will be over 3bn litres for a single month.

Storm

Right now is just the calm before the storm for most Kiwi dairy farmers as they prepare for a busy calving season in August and September. July milk production will be similar to June supplies, but by August the volume of milk being collected from New Zealand dairy farms will quickly start to ramp up to well over 1bn litres.

For the 2019/20 milking season that ran from June 2019 to May 2020, New Zealand dairy farmers pumped out just over 21bn litres of milk.

Will they produce the same volume this coming season?

It’s likely New Zealand has hit ‘peak milk’ in terms of its production potential.

New Zealand farmers are facing increasingly stringent environmental regulations that will constrict their milk supply over the coming years. If anything, New Zealand milk production is likely to fall back below 20bn litres over the coming years, which could open up opportunities for the European dairy industry, including Ireland.