Inside Milk
New Zealand increases milk supply in March
Dairy farms in New Zealand produced considerably more milk in March this year than last year. The dairy sector is thus maintaining the relatively high level of February, probably partly encouraged by the higher milk price paid out by market leader Fonterra.
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Milk production for March amounts to 1.844.000 tons. This is more than 9,7% more than in March 2020 and 7,6% more than in March 2019. In the third month of 2017 and 2018, milk production was slightly higher than in March of this year. The fact that the milk supply remains at a good level despite the seasonal decline is due to the higher milk price in recent months.
The GDT prices rose sharply in the first months of the year and Fonterra has already increased the forecast milk price 3 times. The import needs of China and Southeast Asia are particularly large. As China's economy has recovered from the corona pandemic, the country is a major buyer of New Zealand dairy products such as whole milk powder.
Preparing for dry period
After the seasonal peak in October and November, milk production traditionally declines slowly in New Zealand. From May onwards, the supply traditionally falls below 1 million tonnes, because dairy farmers slowly prepare the cows for the dry period in June and July. Then it is winter in New Zealand.