Milk lake New Zealand continues to dry up

In September, New Zealand dairy farmers produced 2,5 million tonnes of milk. A decrease of 3,75% compared to the same period last year. However, the shrinkage is slightly smaller than in the months before September. This month, milk production will reach its seasonal peak, but it is unlikely to match the volumes produced in previous years.

Milk production has been faltering all year round. In September, the weather conditions were no longer a disruptive factor, Fonterra said. New Zealand's largest dairy processor by far reports a decline that is slightly above the national average.

Climate plan
In the longer term, there is a risk of further shrinkage of the New Zealand milk pool. Not so much due to autonomous shrinkage, but due to tightened government policy. The government wants to be CO2050 neutral by 2. This is where the problem comes in, because about half of the emissions come from agriculture, especially dairy farming. This means that the cut is likely to be the dairy herd to reduce emissions. There are rumors of a 15% reduction in animal numbers. Whether the soup is actually eaten that hot remains to be seen. In any case, the reduction proposals mentioned provide a clear picture of the direction the government wants to take. 

To speed up the plans, New Zealand wants to start remediation within three to five years. Naturally, the plans are against the sore leg of the dairy sector. For example, Fonterra, the largest company in the country, has already expressed criticism. At the same time, the company realizes that doing nothing is not an option. That is why the company has indicated that it will invest $2030 billion in reducing emissions by 1.