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Dry conditions have caused milk production in New Zealand to fall by 130m kg of milk solids in March 2019 compared to the same month last year. The Fonterra Global Dairy Update said that this represents an 8% drop in production.
Meanwhile, Australian milk production dropped by 13% in February 2019 compared to the same month last year, while the EU and US milk supplies remain stable.
Exports from the Australia, New Zealand and the EU continue to grow, the Fonterra report states. For the 12 months to February 2019, US dairy exports rose by 6%, driven by a 103,000m t increase in skimmed milk powder and whole milk powder exports. This was offset by a 38,000m t drop in whey exports due to lower demand from China.
New Zealand dairy exports were up 4% in the 12 months to February 2019, but they were up 27% year on year for the month of February.
Infant formula, fluid milk products and whey powder drove the 7% increase in Australian dairy exports over the year.
EU dairy exports were up 1% in the 12 months to January 2019. SMP, lactose and infant formula exports increased by 149,000m t but fluid milk products and WMP dropped by 110,000m t.
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