Inside Milk
Brilliant start to New Zealand milking season
New Zealand dairy farmers have kicked off the new milking season, which starts on June 1, with a bang. Milk production in June is more than 14% higher than the same month in 2018, reaching a record level. However, these figures are relative.
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The month of June is traditional in New Zealand, where it is now winter, the lowest point of the milking season. The milk supply is then less than 10% of the volume that dairy farmers milk in peak months such as October and November. The impact on the dairy market is therefore limited with a milk production of 226.000 tons in June.
This is evident from the supply data from the Dairy Companies Association of New Zealand (DCAZ), or the New Zealand version of the NZO. This is the first time that the milk supply in June has exceeded 200.000 tons. In 2018, 198.000 tons arrived at the dairies. It is not yet possible to say whether the higher winter production is also a prelude to an increase in milk supply.
Leveling off milk production
Fonterra expects milk production to level off for the new season, the dairy giant previously reported. New Zealand expects a slight increase in milk production of 0,4% for 2019/20. This is a lot lower than the increase in the New Zealand milk pool last season. The 2018/19 milk year resulted in a production of 21.845.000 tonnes, an increase of 2,2% compared to the year before.