New Zealand milk production decreased 2.2% on milksolids for June compared to the same period last year as farmers dry off calving herds, following unfavourable weather conditions in May and milk price forecast announcements.
Its total milk collected for that month was 14.5 million kg MS, Fonterra’s latest Global Dairy Update says. Collections for June represent less than 1% of the full season forecast.
New Zealand milk production for the 12 months to June was down 0.8% on the previous comparable period.
Milk production was also back in the United States, down 1% in June. The production decrease was mainly driven by the ongoing outbreak of avian influenza, resulting in smaller herd sizes and decreased milk yield per cow. This was partially offset by lower feed costs, allowing farmers to feed their cattle increased rations.
Elsewhere, milk production in Australia increased 3.5% in May compared to the same period last year. European Union production lifted 0.7% for May, driven by ongoing growth in France and Poland.
European raw milk prices have slightly increased to reflect tight supplies in Western Europe. EU milk production for the 12 months to May was up 0.1% on the previous comparable period.
New Zealand dairy exports decreased 6%, or 17,820 tonnes in June compared to the same period the year prior. The decrease was due to reduced demand of whole milk powder and fluid milk products to key markets including China and Algeria.
Exports for the 12 months to June were up 0.7%, or 23,264t, on the previous comparable period. This was mainly due to rising demand for SMP and cheese from southeast Asian markets such as Indonesia.
In Australia, exports lifted 17.7%, or 9163t for May due to clearing additional inventory held this year compared to prior year.
Exports from the EU and US were both down 3.8% or 22,249t and 0.8%, or 1852t respectively for May.
China’s monthly imports decreased by 20.5%, or 58,864t in June, driven by lower import volumes of fluid milk products, WMP and SMP. Imports for the 12 months to June were down 12.2%, or 393,790t, on the previous comparable period. This was mainly due to ongoing decline in import demand of milk powder products as China prioritises local brands.
Elsewhere in Asia, imports lifted 5.6% or 24,576t for May due to higher import volumes of whey by Malaysia, the Philippines, and Thailand. Imports for the 12 months to May were up 5.5%, or 268,038t, on the previous comparable period. This was mainly due to higher import volumes of WMP by Vietnam and fluid milk products by the Philippines.
Latin America dairy import volumes were up 2.1%, or 4,651t and in the Middle East and Africa these increased 6.4%, or 30,866t.
