New Zealand Milk Production Update – Feb ’20
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Jan ’20. Highlights from the updated report include:
- New Zealand milk production volumes declined on a YOY basis for the fourth time in the past five months during Jan ’20, finishing down 0.7%. Production on a milk-solids basis remained higher on a YOY basis for the seventh time in the past eight months, however, finishing up 1.1% YOY.
- Fonterra’s current ’19-’20 farmgate milk price forecast of $7.00-$7.60/kgMS was raised by an average of $0.25/kgMS, or 3.5%, in Dec ’19 and is on pace to reach a six year high at the midpoint of the forecast. Fonterra reaffirmed the price forecast in late February.
- New Zealand cow & heifer slaughter rates increased 29.7% on a YOY basis during Jan ’20 when normalizing for slaughter days, finishing higher on a YOY basis for the seventh consecutive month.