New Zealand Milk Production Update – Oct ’19
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Sep ’19. Highlights from the updated report include:
- Sep ’19 New Zealand milk production volumes declined 0.7% on a YOY basis, finishing lower for the first time in the past four months. Production on a milk-solids basis remained higher, however, increasing by 0.7% YOY.
- Fonterra’s ’19-’20 farmgate milk price forecast of $6.55-$7.55/kgMS was raised by $0.30/kgMS in Oct ’19 and is on pace to reach a six year high at the midpoint of the forecast.
- Aug ’19 New Zealand cow & heifer slaughter rates increased 12.5% YOY when normalizing for slaughter days but remained at the second lowest seasonal level experienced throughout the past five years.