Huge fall off in New Zealand’s milk production over peak month

Fonterra’s milk collection across New Zealand for the six months to November 30 reached 695 million kgMS, 6% lower than the same period last season.

It says New Zealand milk collection over the peak was impacted by unfavourable weather conditions across most dairying regions.

This resulted in November collections reaching 194 million kgMS, 7% behind the same month last season.

Meanwhile, Fonterra’s milk collection across Australia for the five months to 30 November reached 53 million kgMS, 9% lower than last season.

In November milk collection reached 13 million kgMS, 1% behind the same month last season. Production peaked three weeks later than last season due to the wet spring conditions with most regions now in a good position with supplementary feed available if necessary.

Outlook

Forecast milk collection has been maintained at 1,460 million kgMS, reflecting very challenging conditions across most parts of the country. With season to date milk collection and peak milk volumes significantly impacted we expect these lower volumes to flow through the balance of the 2016/17 season.

As the season progresses we will be able to more accurately forecast total milk collections and we will continue to provide market updates.

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EU production

EU production decreased for the fourth consecutive month with September down 3% compared to the same month last year. Many of the large EU producers continue to see decreasing production including the UK down 8%, France down 7% and Germany down 3% and Ireland posting the first decrease in some time, down 4%.

Production for the 12 months to September is up 2% compared to the same period the previous year.

EU Commission milk deliveries are forecast to increase 0.9% in 2016.

US production

US production in October increased 3% compared to the same month last year, supported by increased cow numbers compared to October 2015.

Milk production for the 12 months to October increased 2% compared to the same period the previous year.

The United States Department of Agriculture recently reviewed their 2016 forecast milk collection down 0.2 billion pounds to 212.5 billion pounds.

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