Analysis Milk supply
Kiwis milk the least in 9 years
Milk supply in New Zealand seemed to pick up again in November, but the figures for December again show a large gap compared to the same month a year earlier.
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New Zealand dairy farmers milked 2,6 million tonnes in the last month of last year, according to figures from trade organization DCANZ. This is a decrease of approximately 5% compared to the previous year. This means that the backlog is increasing again, as a decline of 1,5% was visible in November. In the months before that the difference was about 3%.
Lots of rainfall
So far in the current season (which runs from June to May), the gap is 3,3%. The figures for December are the lowest in nine years. Despite that, milk prices in New Zealand are at records heading for, so little milking takes place. In any case, it is not due to drought. In December the rainfall on the South Island was the most in seventeen years and the North Island also received a fair amount of rainfall. This rain is desirable to replenish soil moisture, local media write.
The decline in milk supply has now been priced into the relatively high current dairy prices in New Zealand, just as is the case in Europe and the United States. Nevertheless, dairy prices at the first Global Dairy Trade of the year rose unexpectedly up sharply.