New Zealand Milk Production Update – Jan ’21
Executive Summary New Zealand milk production figures provided by Dairy Companies Association of New Zealand (DCANZ) were recently updated with values spanning through Dec ’20. Highlights from the updated report include:
- New Zealand milk production volumes increased 0.7% on a YOY basis during Dec ’20, reaching a five year high seasonal level. The YOY increase in New Zealand milk production volumes was the seventh experienced throughout the past eight months.
- Fonterra’s ’20-’21 farmgate milk price forecast of $6.70-$7.30/kgMS was revised $0.40/kgMS higher at the bottom end of the forecast range throughout Dec ’20 on continued strong Chinese demand. The ’20-’21 farmgate milk price forecast remains slightly below the six year high level experienced throughout the previous production season at the midpoint of the estimate, however.
- New Zealand cow & heifer slaughter rates increased 9.2% on a YOY basis during Dec ’20 when normalizing for slaughter days, finishing higher for the sixth time in the past seven months and reaching a three year high seasonal level.