Milk Supply Resilient Amid Global Volatility
Source: en.edairynews.com
New Zealand's dairy sector shows resilience with increased milk production despite global volatility.
As New Zealand approaches the end of the 2024/25 dairy season, its milk production continues to demonstrate resilience. March saw an increase of 0.8% in milk solids compared to the previous year, totaling 173.99 million kilograms.
This figure contributes to a 3.0% year-on-year rise in season-to-date milk solids. The domestic outlook remains positive despite challenges in international markets such as the US, where production fell by 2.5% in February. Issues like foot and mouth disease in Hungary could create further complications in Europe, while Argentina bucks the trend with a notable 15.9% increase in March milk production.
This figure contributes to a 3.0% year-on-year rise in season-to-date milk solids. The domestic outlook remains positive despite challenges in international markets such as the US, where production fell by 2.5% in February. Issues like foot and mouth disease in Hungary could create further complications in Europe, while Argentina bucks the trend with a notable 15.9% increase in March milk production.
China reported a 6.3% drop during January and February, highlighting ongoing global supply issues.
On the trading front, New Zealand recorded positive outcomes from consecutive Global Dairy Trade (GDT) auctions, with substantial price increases in products like whole milk powder and skim milk powder due to strong demand from Asia and reduced product volume due to seasonal constraints.
New Zealand dairy farmers stand at a pivotal moment; while facing geopolitical and climatic challenges, they have a window of opportunity to reinforce resilience and capitalize on current strong demand.
