Inside Milk
Lower milk price is trend in New Zealand
Following on from New Zealand dairy processors Fonterra and Westland, Synlait has also lowered its milk price forecast.
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Synlait has lowered the milk price forecast for the 2018/2019 season by 0,50 New Zealand dollars ($) to $6,25 per kilo of milk solids (this is 11,5 liters of milk). The milk price is therefore in line with the adjusted forecasts Fonterra and Westland.
Although manufactured dairy prices are also on the rise in New Zealand, a reduction is necessary, according to Synlait. The dairy processor points out the enormous increase in milk; especially on the North Island, where there is an excellent grass season. This determines milk production, because approximately 90% of the ration consists of grass/meadow hay.
Milk supply increases again
The milk supply in New Zealand shows a striking movement. From June to October, the milk supply (month to month) was approximately 6% ahead of 2017. In November, the supply unexpectedly showed a see flattening; the milk supply that month was 2,9 million tons, which is 'only' 1% higher than the same month in 2017.
The November supply appears to be an incident, because in December milk production amounted to 2,7 million tons (+3,4% compared to December 2017). On balance, New Zealand fanciers produced 21,9 million tonnes last year. This is the highest in 5 years and more than 2% more than in 2017. From October, milk production shows a seasonal decline and this continues until June.
