World’s biggest dairy exporter to increase milk production again

Milk production in New Zealand is set to increase for a second year after farmers in the world’s biggest dairy exporter expanded herds, the government said.

Output will advance 2.3% to 1.856bn kilogrammes of milk solids in the year ending May 31, 2015, the Ministry for Primary Industries said. The dairy herd expanded to 5.01m cows on July 1, 2013, from 4.82m a year earlier, and will hold at 5m this year.

Earnings from milk have dropped for New Zealand farmers amid increasing global supply, helping curb world food costs.