New Zealand has lost extra liters of milk

The milk supply in February amounted to 1,8 million tons, which is virtually the same as the same month one year earlier. This is striking, given that production in January was still well (1%) ahead of 7,1. The reason for the rapid decline is the weather conditions in New Zealand. The late summer was extremely dry; especially on the North Island, where most dairy farms are located.

The weather conditions have in New Zealand a greater impact on milk production, compared to other countries. This is because the cows are outside almost all year round. There are also reports that New Zealand dairy farmers are drying off the cows a little earlier this year.

GDT is higher
Fonterra, the largest dairy processor in the country, previously announced that it expected a lower milk supply. That is why they have again lowered the milk collection forecast for the current season, which ends in May, by mid-March.

For European dairy exporters, less milk from New Zealand is actually good news, given that New Zealand sells approximately 95% of its milk production outside the country. China and the Middle East in particular are important sales markets. The drought has undoubtedly influenced the growth shown by Global Dairy Trade.

Drought ravages Australia
Some precipitation has now fallen in the country, although it is not yet possible to say what this means for the rest of the season. Until February, there was a great contrast between the higher milk supply in New Zealand and the significant losses in 'neighboring country' Australia.

Australian milk production for February is not yet known, but in January the supply (704.000 tonnes) was 11% lower than in the same month 1 year earlier. This is as a result of the extreme drought which the country has been plagued by for some time.