New Zealand Milk Production Update – Apr ’20
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Mar ’20. Highlights from the updated report include:
- New Zealand milk production volumes declined on a YOY basis for the sixth time in the past seven months during Mar ’20, finishing down 1.9%. Production on a milk-solids basis remained higher on a YOY basis for the fourth time in the past five months, however, increasing by 0.1%.
- 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 Apr ’20 and will announce its opening ’20-’21 farmgate milk price forecast in late May.
- New Zealand cow & heifer slaughter rates declined 8.0% on a YOY basis during Mar ’20 when normalizing for slaughter days, finishing lower on a YOY basis for the first time in the past nine months.