New Zealand is beginning to show the first real signs that milk production will decline this year, as farmers react to low milk prices. The months of June and July are negligible in terms of the milk season in New Zealand, but August is the first month when milk begins to flow in earnest. Data released in the last week shows that New Zealand milk output for August was down 2.7% compared with last year to more than 1.3bn litres.
New Zealand is beginning to show the first real signs that milk production will decline this year, as farmers react to low milk prices. The months of June and July are negligible in terms of the milk season in New Zealand, but August is the first month when milk begins to flow in earnest. Data released in the last week shows that New Zealand milk output for August was down 2.7% compared with last year to more than 1.3bn litres.
While this decline is close to the 3% slowdown in milk production forecast by Fonterra for this season, extremely wet weather on the North Island in recent months has certainly affected supply.
With over 70% of New Zealand milk produced between August and January, the numbers emerging over the coming months from the country’s dairy industry will be very closely watched by global dairy markets.
In the US, farmers continue to drive milk output. Total US milk production for September was recorded at just over 7.4bn litres.
From January to September, US milk production totalled more than 70bn litres, which means output from US dairy farms is running at about 1.7% ahead of last year.
The US dairy herd is slightly larger than last year at 9.34m head, up 15,000 head year-on-year.
However, the big difference on US dairy farms in 2016 is that farmers are milking their cows harder than last year, with milk output per cow up between 1.4% and 2%.
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