Slow New Zealand milk start hits supply

A wet spring which has cut milk solids production in New Zealand by 0.2kg-0.3kg per cow per day on many farms is on course to accelerate the drop in milk supply across Europe, Oceania, and Latin America, which has been lifting markets.

Early season production in New Zealand is back 3% compared to last year, and Tuesday’s return to a rising GDT Price Index (up 1.4%) has confirmed the effect on markets.

The US is the only expanding milk producer, up 1.9% for the year to date, benefiting from low grain prices, but their 36% milk price cut since the highs of 2014 is set to turn the milk tide.