New Zealand milkers have to deal with drought

In December, processors in New Zealand collected 2,7 million tonnes, according to the dairy industry trade association DCANZ. This is an increase of less than half a percent. Apparently stable production figures. However, that is not the case, because there are underlying major differences between production figures on the North and South Island, according to dairy cooperative Fonterra.

For example, supply in December on the North Island, which has traditionally been the core of New Zealand dairy farming, was more than 2% lower than the same month in 2018. On the South Island, production was 2% higher.

Drought on the North Island
It is the middle of summer in New Zealand and they notice that on the North Island. Particularly in the Waikato region and the east coast of the island. There is talk of extremely warm and dry conditions. The precipitation gauge in some parts of the island has not detected rain for some time. There is currently no prospect of improvement. The long-term forecasts from local weather services predict February to remain dry.

Logically, this inhibits grass growth. And that then puts a brake on milk production, given that the rations on many New Zealand dairy farms consist virtually of fresh grass and hay. In addition, many companies practice permanent grazing. There do in New Zealand media even though rumors are going around that dairy farmers are taking cows to slaughter. And while milk prices are currently at their highest levels in years.

Overall, production in New Zealand was able to remain reasonably stable in December, because conditions on the South Island are extremely good thanks to a lot of rainfall. However, if the drought on the North Island continues, shrinking supply figures are in prospect by mid-2020.